In accordance with the timetable set out in the report of the working group on the accountability of secretaries general and accounting officers, the Mullarkey report, my Department is putting in place a risk management programme. As the Mullarkey report envisaged, the risk management programme will identify and address strategic, operational, financial and reputational risks and establish procedures for mitigating those risks.
Under the Government's recently announced decentralisation programme, my Department's development co-operation directorate shall decentralise to Limerick. Work on the establishment of a formal risk management system for the directorate's overseas aid programme commenced in 2002. Following a pilot programme in Zambia, a series of risk management workshops was held in the programme country missions and risk registers were developed. Risk reporting is now integrated into the regular aid mission reporting system. The assessment and management of risk has become a key element of programme approval procedures. The roll-out of formal risk management throughout the DCD at headquarters is under way and is expected to be completed by the end of 2004.
The Department plans to hold a further workshop in September to deal specifically with the risks associated with decentralisation. It will take account of the wider implications of decentralisation for the Department in general as well as for DCD. The aim will be to identify key risks, identify and assess the adequacy of existing controls, consider how these controls can be improved and identify those responsible for putting controls in place. Some preliminary risk analysis has already been undertaken in the context of preparation of my Department's decentralisation implementation plan. Further work will be done in advance of the workshop. In developing and putting into effect our implementation plan, we will seek to maximise the potential benefits accruing to the Department and its staff while minimising any additional costs that may arise.