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8. Risk Appetite Analysis

This sub-section assesses the risk appetite approved by UNFPA management and what steps to take when the risks assessed are beyond the risk appetite.

Overview

The risk appetite has been outlined in the UNFPA Risk Appetite Statement. Based on the analyses of individual risks, together with the defined risk appetite, an evaluation is made to determine which risks can be accepted and which risks require a priority response. Risks that present a potential for fraud, misuse of funds, harm to people, beneficiaries and/or staff, impact on UNFPA’s reputation should be avoided where possible and otherwise minimized and mitigated.

Risks assessed to be outside the approved risk appetite levels will require the selection of an appropriate risk response design for the decisions by the appropriate management level during the validation phase.

Risk appetite

The risk appetite has been defined for each risk category. Achieving a common understanding of UNFPA’s risk exposures in relation to its appetite for risk, to be able to articulate the Organization’s risk profile coherently internally as well as externally to the Member States, Donors, and other stakeholders.