Building Governance for Risk Management

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Presentation transcript:

OECD Principles and Recommendation on the Governance of Risk Management

Building Governance for Risk Management Risk: a multi-dimensional issue Need for policy instruments to support policy actions both in the public and private Need to create a safety culture and awareness

Risk Governance Policy at the OECD Area-specific Level National/ international Level Risk Management and Regulatory Policy Best Practice Principles on the Governance of Regulators Environmental Hazards and Safety Recommendation Concerning Chemical Accident Prevention, Preparedness and Response OECD High-level Risk Forum OECD Recommendation on the Governance of Critical Risks Ind. Regulators NICS Nat’l Control Tower (MoNSM) 3

Recommendation concerning Chemical Accident Prevention, Preparedness and Response Establish or strengthen national programmes for the accidents Develop overall safety objectives and implement control frameworks Consider the use of safety performance indicators (SPI) Encourage and/or facilitate processes Establish arrangements for monitoring safety Arrange implementation of emergency preparedness plans Share information and experience on accident case histories Support and promote related research   II.   Take into account the OECD Guiding Principles for Chemical Accident Prevention, Preparedness and Response and the OECD Guidance on Safety Performance Indicators Actively promote application of the relevant parts of the OECD Guiding Principles, and use of the Guidance on SPI. Promote the wide dissemination and use of the OECD Guiding Principles and of the OECD Guidance on SPI Take the necessary steps to facilitate the wide distribution of the OECD Guiding Principles and Guidance on SPI Invites other international organisations to use and disseminate the OECD Guiding Principles and Guidance on SPI; and To pursue a programme of work designed to facilitate the implementation of the OECD Guiding Principles and Guidance on SPI, and to review within three years the implementation of this Recommendation. Observe the OECD Guiding Principles and the OECD Guidance on SPI In Gumi chemical leakage accident, the actors did not observe the OECD’s recommendation above mentioned.

OECD Best Practice Principles on the Governance of Regulators Role clarity Maintaining trust Governing body structure Accountability and transparency Engagement Funding Performance evaluation Nat’l Institute of Chemical Safety (NICS) achieved a lot, but needs much to be done!! OECD Recommendation Fulfilled by NICS? Role clarity Yes (Not enough) Maintaining trust NA (No) Governing body structure Accountability and transparency NA Engagement Yes Funding Performance evaluation

The OECD Principles on the Governance of Critical Risks 1. A comprehensive, all-hazard and trans-boundary approach to risk governance 2. Preparedness through foresight capacities and financing frameworks 3. Awareness to foster whole-of-society investments in prevention 4. Adaptive and inter-agency crisis management capacities 5. Principles of good governance in risk management decision- making: transparency, accountability & continuous improvement Function as guidance for the newly-establishing risk-management control tower (MoNSM).

The OECD Principles on the Governance of Critical Risks 1. A comprehensive, all-hazard and trans-boundary approach to risk governance Develop a national strategy for the governance of critical risks which would: identify and designate core capabilities clarify roles for the management of the risks adopt an all-hazards approach that identifies inter-dependencies between systems; Assign leadership at the national level to drive policy implementation multi-disciplinary, interagency-approaches that foster the integration of public safety platforms to identify inter-linkages that underlie critical risks desired levels of preparedness Engage all government actors at national and sub-national levels support citizen engagement and invite communities, businesses, individuals develop a shared vision of critical risks and the division of responsibilities foster a whole-of-society approach to clarify accountability Establish partnerships with the private sector identify shared interests and common goals create models for public-private partnerships take advantage of private sector capability and expertise

The OECD Principles on the Governance of Critical Risks 2. Preparedness through foresight capacities and financing frameworks Develop risk anticipation capacity through: the development of capacity for horizon scanning, risk assessment and early warning the identification of critical hazards and threats the adoption of all-hazards approaches & the revision of their national risk assessment   Equip departments and agencies with the capacity through: the development of capabilities the acquisition of tools to assess and manage threats the mapping of illicit activities and other analyses  Monitor and strengthen core risk management capacities through: the allocation of resources assistance for the development and continued training the implementation of efficient inspection systems,  Plan for contingent liabilities within clear public finance frameworks by: establishing mechanisms for estimating, accounting and disclosing contingent liabilities adopting broad frameworks for assessing risk-related expenditures.

The OECD Principles on the Governance of Critical Risks 3. Awareness to foster whole-of-society investments in prevention Encourage a whole-of-society approach through: a two-way communication between government and stakeholders the combination of targeted communication providing notice to households about hazards and threats informing and educating the public Strengthen the mix of structural protection and non-structural measures through: the reinforcement of investment in prevention and mitigation efforts strategic planning to build safer and more sustainable communities robust surveillance, monitoring and alert networks the development of fiscal and regulatory options the incorporation of risk management decisions the use of cost/benefit analyses Encourage businesses to take steps to ensure business by: developing standards and toolkits ensuring that critical infrastructure, information systems and networks function

The OECD Principles on the Governance of Critical Risks 4. Adaptive and inter-agency crisis management capacities Establish strategic crisis management capacities by: establishing a solid foundation of standard operating procedures and emergency plans complementing these core capacities with flexible resources facilitating the sharing of multi-disciplinary expertise Strengthen crisis leadership, early detection and sense making capacity by: strengthening government leadership developing strategies, mechanisms and instruments for “sense making” developing and funding early warning systems Establish the competence and capacities through: the designation of an authority the promotion of incentives for businesses and individuals support for the recruitment, retention, training, equipping and maintenance Build institutional capacity by: reducing vulnerability to future events and strengthening long term resilience establishing multi-stakeholder governance arrangements

The OECD Principles on the Governance of Critical Risks 5. Principles of good governance in risk management decision- making: transparency, accountability & continuous improvement Ensure transparency by: fostering honest and realistic dialogue between stakeholders providing public access to risk information encouraging openness Enhance government capacity to make the most of resources by: strengthening the ability of government adopting strong frameworks for implementation   Share knowledge, including lessons learned by: incorporating the findings from events and research identifying the lessons learned for policymakers organising briefings for stakeholders

Conclusion Bring together policy makers from gov’ts, practioners, and experts in identifying and addressing risks. Contribute towards establishing a catalogue of criteria to assess the achievements of NICS. Function as check points or guidance in implementing its risk management policy Self-evident principles - Implementation matters!!

Thank You! Sangmyeong Cho OECD/ Public Governance and Territorial Development Directorate sangmyeong.cho@oecd.org