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Global Fund Board sets risk appetite levels for nine key organizational risks, along with target risk levels and timeframes for achieving the targets
The Risk Appetite levels have been set at the current risk levels
Until the Global Fund defines its risk appetite, it can’t know what level of assurance is required: OIG audit
Assurance activities are insufficiently aligned to highest risk areas
Programmatic and health product risks have supplanted financial risk in the rankings
“The work on defining risk appetite is in its early stage and until [it is] sufficiently advanced, there is limited guidance on the required level of assurance.” This is one of main conclusions of an audit by the Office of the Inspector General (OIG) of in-country assurance.
Weaknesses in oversight and accountability identified at Board and senior management levels
In its annual report, prepared for the Board meeting on 3-4 May 2017, the Office of the Inspector General (OIG) said that the Global Fund is making “significant progress” in managing risks (see GFO article).
One area that has not been adequately addressed is risk appetite
In its annual report for 2016, the Office of the Inspector General (OIG) said that although significant gaps remain, distinct progress is being made across the six key areas of the risk architecture (see figure below).