The AIFFP engages effectively with risk at all levels as a necessary part of its business.
The AIFFP positively engages with risk to achieve its objectives, balancing risks posed by individual projects against the positive contributions they offer.
The AIFFP meets existing DFAT risk management policies and structures, including the following:
- Projects are screened for risks and safeguards in project assessments
- Safeguard risks are managed as per DFAT’s Environmental and Social Safeguard Policy, Child Protection Policy and Protection from Sexual Exploitation Abuse and Harassment Policy
- All projects, as well as the AIFFP as a whole, maintain active risk registers which are reviewed and updated at least quarterly
- Due diligence assessments of partners are completed before entering into a financing arrangement regardless of the value of the arrangement
Approach and principles
As a financing facility, the AIFFP must engage with risk at a portfolio level.
To achieve its objectives, the AIFFP requires a risk assessment approach that is guided by the following DFAT risk management principles:
- Improves risk culture – by embedding risk management into business as usual, where risk is everyone’s responsibility and is actively managed across all of the AIFFP’s work
- Proportional – by managing risks in a way that is proportionate to the potential impact on DFAT’s objectives, and makes best use of resources
- Supports innovation – by accepting uncertainty where there is evidence that the benefits of doing so outweigh potential negative impacts
- Tailored – by tailoring the risk approach to suit different environments and stakeholders, and different stages of the project life cycle