Fiduciary Risk Assessment of climate change budget support
|In 2009 Danida implemented a five-year cooperation program to support Vietnam in climate change mitigation and adaption. The programme’s overall objective was to contribute to greater sustainability in economic and social development and poverty alleviation in Vietnam through increased capacity of the country to adapt to climate change and increase mitigation efforts.
Prior to this, there had been no assessment on sector-specific fiduciary risks for the two key counterpart ministries for this programme and existing weakness in Vietnam’s Public Financial Management (PFM) systems made a Fiduciary Risk Assessment (FRA) necessary.
Mokoro consultant, Mark Minford, undertook the FRA to expose any fiduciary challenges and risks that this programme was exposed to and offer possible measures that would help to mitigate and improve the system instead of bypassing them. The objective of the assignment was to improve the opportunities for strengthening the financial management capacity of partner agencies in the Climate Change Adaptation Program by identifying appropriate financial management safeguards and triggers.