Risk Management in Maldives: Sharing Practical Experience and Lessons Learned
Risk management is a systematic approach to determine which goods and passengers need to be examined in detail when entering a country. It involves (i) collecting, storing, and analyzing data to understand the risk profile of goods and passenger luggage; (ii) using risk profiles to assess the likelihood of illicit trade activity; and (iii) addressing risks by inspecting consignments and responding to illegal activity.
Maldives is implementing reforms to improve risk management controls and to strengthen its trade environment. Recent activities to facilitate trade and safeguard its borders seek to deliver operational and economic gains in the public and private sectors. Government agencies are working to improve service delivery and, at the same time, to leverage limited human and financial resources more efficiently. Traders, in turn, will benefit from reduced time to import and export goods, increased predictability of services, and greater ease of doing business.
- Maldives is an island nation that relies on imports and exports for essential goods, services, and economic growth. Improving the efficiency of its cross-border regulatory agencies can reduce the costs of international trade, drive economic growth, and reduce resource demands on both public and private sector institutions.
- Improving risk management processes and technology is a low-cost, high-yield approach to enhance trade efficiency. ADB is supporting the Maldives Customs Service (MCS) to improve risk management controls by (i) providing advice on institutional reforms, (ii) helping MCS to implement new technology and customs processes, and (iii) fostering a higher degree of communication between trade stakeholders and government agencies.
- MCS has begun implementing reforms in (i) information and communication technology to support collaboration, (ii) physical and non-physical interventions to strengthen inspections, and (iii) institutional reforms and human capacity development to drive more effective risk management operations. Outcomes include greater national security, reduced administrative costs, and a more competitive trade economy.