Good Governance - B.2. Risk Management
Risk management involves having policies, measures and approaches to manage, mitigate or prevent the detrimental effects of risks faced by the institution. Whether risks arise from internal or external factors, the goal is to defuse their negative effects on the administration of the social security programmes, including financial sustainability; fund investments; the management of coverage and contributions, and the delivery of member benefits and services; and human capital and ICT resources.
These five guidelines provide a general framework on risk management, a daily concern for social security institutions. They are underpinned by a process model. The institution, having identified the potential points of vulnerability of its main processes and services, should embed at each point a response system that ensures active, appropriate and timely measures to contain or prevent the effects of relevant risks.