Scope and Context

The UNDP Enterprise Risk Management (ERM) framework defines the scope and criteria of UNDP’s risk management across the organisation and its projects.

The first step of a risk management process is gathering an understanding of the internal and external context under which the project will operate and seek to achieve its objectives. Contextual factors affecting a project are external and internal. It is important that these are identified and captured in the grant and project document, and are revisited regularly, throughout the risk management process, particularly during annual planning and risk reviews.

Examples of external factors particularly relevant to Global Fund-funded projects:

• Security and conflict landscape of the country, presence of violence, conflicts, socio-political tensions, crime, humanitarian crisis, displacements, etc.
• Political stability, national priorities, capacity of government to provide services
• Economic, social, cultural, ethnic, embargoes and sanctions regimes and financial factors and drivers of inequality, stigma, conflicts, corruption, and poverty
• Country’s legal and human rights framework, regulatory environment
• Market, infrastructures, inflation, sanctions, etc.
• External stakeholders and relationships, their capacities, presence, technical expertise, perceptions, values, expectations, risk tolerance
• Natural hazards, geography, climate, environmental frameworks

Examples of internal factors particularly relevant to Global Fund-funded projects:

• UNDP’s mandate in country, United Nations Sustainable Development Cooperation Framework and Country Programme Document
• Existing Country Office’s (CO) capacities, resources, knowledge, culture, systems, processes
• Governance mechanisms, institutional arrangements, organisational structure, roles, and accountabilities
• Standards, policies, guidelines, internal controls, wider risk management and control environment of UNDP
• Data, information systems, information flows
• Relationship with internal stakeholders
• Interdependencies and interconnections across projects
  

Practice Pointer

UNDP has a number of risk management tools that can support context setting, as per mapping available here.

In addition, a list of key risks affecting the UNDP-implemented Global Fund project can be accessed here.

Contextual factors and risks are captured in the funding request and the UNDP project document, inform the risk assessment process, and are revisited regularly, throughout the risk management process.

Additional guidance to support this area of work are also available through a number of resources listed below:

• Risk catalogue for Global Fund projects

• UNDP POPP Enterprise Risk Management (ERM) Processes