Policies: Risk management framework

Risk management framework

GCF’s risk management framework defines GCF’s approach to managing risk at both the institutional and funding proposal investment level, covering funding, non-financial, investment and compliance risks. It also contains GCF’s risk appetite, approach to assessing risk throughout the project review as well as approaches to reporting on risk matters. This policy category also includes the GCF’s internal control framework.

Policies and decisions

Risk management framework
9 policies

Revised initial financial risk management framework

Sets out the financial risk policies, risk monitoring and reporting, and risk governance components, as updated by the Risk Management Committee.

Revised risk register (Component I)

Adopted by decision B.17/11 (a) (i). Adopts the risk register which provides a comprehensive list of non-overlapping risk types that concern the GCF.

Risk appetite statement (Component II)

Adopted by decision B.17/11 (a) (ii). Provides a statement of the levels of risk that the GCF is willing to take.

Risk dashboard (Component III)

Adopted by decision B.19/04 (b). Presents an update to the risk dashboard.

Risk guidelines for funding proposals (Component IV)

Adopted by decision B.17/11 (a) (iv). Provides guidelines for the risk assessment of Funding Proposals and Concept Notes by GCF.

Investment risk policy (Component V)

Adopted by decision B.19/04 (a) (i). Defines the investment risk management requirements related to the risk of failure of a Funded Activity or Readiness / Project Preparation Facility (“PPF”) Proposal to deliver the expected impact, or the risk of delay or shortfall of reflows from these activities.

Non-financial risk policy (Component VI)

Adopted by decision B.19/04 (a) (ii). This policy describes management approach to non-financial risks and the definition of non-financial risks.

Funding risk policy (Component VII)

Adopted by decision B.19/04 (a) (iii). This document presents the policy governing funding risk management for the GCF.

Compliance risk policy (Component VIII)

Adopted by decision B.23/14. The compliance risk policy provides a framework to deal with compliance risks.

Internal control framework and internal audit standards
1 policy

Administrative guidelines on the internal control framework and internal audit standards

Adopted by decision B.BM-2015/06 (a). Adopts the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework as the internal control framework for the GCF.
Adopted by decision B.BM-2015/06 (c). Establishes the administrative guidelines on the internal control framework and internal audit standards.

Retired
1 policy

Initial financial risk management framework

Adopted by decision B.07/05; superseded by B.26/Inf.10/Add.01 annex I. Set out the financial risk policies, risk monitoring and reporting, and risk governance components.