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Risk Management Framework and Policy

Risk Management Framework and Policy December 2019 GPE Risk Management Framework and Policy | Page 2 Table of Contents List of Acronyms .. 3 Introduction to GPE .. 4 PART 1: GPE RISK Management Framework .. 5 1. Purpose and expected benefits of the Framework .. 5 2. Components of the Framework .. 6 Risk Appetite 7 GPE Three Lines of Defense Model .. 9 Risk Management Processes .. 13 Risk Identification .. 13 Risk Analysis and Evaluation .. 17 Risk Treatment .. 17 Recording and Reporting .. 22 Operational Risk .. 23 Country Risk Index .. 26 PART 2: GPE RISK Management Policy .. 28 List of Annexes .. 33 GPE Risk Management Framework and Policy | Page 3 List of Acronyms CA Coordinating Agency CEO Chief Executive Officer CFO CPIA Chief Financial Officer Country Policy and Institutional Assessment CSO Civil Society Organization CST Country Support Team DCEO DCP Deputy Chief Executive Officer Developing Country Partner DLI Disbursement Linked Indicators EPR Effective Partnership Roll out ESPDG Education Sector Plan Development Grant ESPIG Education Sector Program Implementation Grant FFF Financing and Funding Framework FRC Finance and Risk Committee GA Grant Agent GEC Governance and Ethics Comm

Risk management is also interrelated to many other practices that are currently implemented (e.g. result-based financing, monitoring, compliance and accountability) or will be rolled out in the future (e.g. integration of risk in performance

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