1. OECD Principles and Recommendation on the Governance of Risk Management

2. 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

3. 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

4. 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.

5. 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

6. 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).

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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!!

13. Thank You! Sangmyeong Cho
OECD/ Public Governance and Territorial Development Directorate