Catalog

	Table of Contents
p. 20 of 26 BACK | NEXT I. Introduction II. Changes in Development Environment and Agenda III. Themes for Organizational Effectiveness IV. Objective and Principles of Organizational Change V. Analysis of Options VI. Main Features of Organizational Change A. New Geographic Regions B. Enhancing Country Focus: New Regional Departments C. Function and Structure of Regional Departments D. Establishment of a new Regional and Sustainable Development Department E. Role and Responsibilities of Vice Presidents F. Establishment of a Management Committee G. Strategy and Policy Department H. Upgrading the Private Sector Group to a Private Sector Operations Department I. Office of External Relations J. Economics and Research Department K. Office of the Secretary / Office of the General Counsel L. Knowledge Management M. Project Administration and Portfolio Management N. Risk Management O. Checks and Balances VII. Complementary Changes VIII. Challenges and Responses IX. Budget Implications and Implementation Plan X. Conclusions XI. Recommendations

Reorganization of the Asian Development Bank : VI. Main Features of Organizational Change

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N. Risk Management

88. ADB faces several different types of risks. There are already systems in place to manage these in ways appropriate to the type of risk. Operational and reputational risks involving environmental, social and other policy related risks will be handled, in the first instance, by the regional departments. In addition, under the new structure, the Environment and Social Safeguard Division within RSDD will be staffed with individuals with high levels of experience to provide an independent review of project documents and periodic reviews of high-risk projects in the field.

89. Similarly governance-related risks are mitigated, in the first instance at the operations level, through careful project design and implementation. Compliance is monitored and dealt with by distinct units in ADB such as the anticorruption unit in the Office of the General Auditor (OGA); and COSO and OGC by way of their independent review of procurement documents, evaluation reports and consultant selection.

90. Project level risks are managed on the public sector side in several ways. In the first instance, projects are prepared following ADB’s guidelines for financial and economic analyses which are designed to ensure a thorough assessment of the viability of the proposals. These analyses are reviewed by ERD as part of the MRM process. Country exposure limits are established through the IPFs for each country. The Graduation Policy and Performance Based Allocation all relate to management of these risks. Similar risks on the private sector side are managed through a credit committee review of proposed projects and a risk management unit with PSOD.

91. In the above context, the appropriateness of establishing a single risk management unit needs to be considered. There is currently a study under way to assess the structure and operation of country credit risk assessment policies. After this is completed, the question of a unified risk management structure will be examined in depth.

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