Additional tools
Risk Management for Customs in the EU
Development of risk management at Community level is a prerequisite for addressing the challenge posed to the customs union by enlargement , for making progress on security concerns and to achieve equivalence in the application of customs controls. While the process of introducing legislative measures is underway there is a need to push on in parallel with a programme of practical implementation.
A standardised framework for the risk management processhas been devised by a project group set up under the Customs 2002 programme. It is intended to be flexible so that existing systems can be accommodated within the framework while providing the means to ensure there is a common EC approach.
This document sets out the basic agreed theoretical framework for the application of risk management. Future work is focused on the practical and effective implementation of the model.
The model sets out the key steps in the use of risk management by the customs administrations of the EU. It incorporates the various elements of a comprehensive approach to risk management, identifying 4 key steps:
- Context
- Risk Analysis
- Treatment
- Monitoring
These steps are represented in a diagram to show how each step is critical to the successful implementation and effective use of risk management.
Full details of the EU Standard Risk Management Framework are available in this document (pdf 87 Kb)
(87 Kb) .
Putting Risk Management in context
To implement a risk management policy there must be a strategic policy established by the stakeholders. For the EU this strategy has been established in the Customs strategy for the EU.
Risk Analysis
The three core elements to this step in the risk management process are:
Identify the risks
To identify the risks posed by illegal goods, all available information should be examined as potential sources of risk data, evaluated for accuracy and where appropriate, be made available to the operational service.
In respect of operators, the EU and Member States have worked together to create a Catalogue of Risk Indicators which supports the identification and assessment of risks for economic operators. This catalogue is an important source of information, which is available for customs services.
Analyse the risk
Using the risk data, and assessment of the risks in each aspect of the context should be undertaken.
Proven risk is historical fact, an irregularity has occurred and the organisation has a record of the incident and the facts surrounding the case. Lists of these risks can be analysed against current data to see if conditions surrounding the risk currently exist.
Potential risks are risks that have not yet been uncovered but are suspected. For example the development of a new commodity to which the owner assigns their Trade Mark, may become the target of others wishing to breach the owners intellectual property rights.
A key tool to assist in the identification and analysis of risk in the EU is the use of the Risk Information Form which is used by customs in their targeting of consignments.
Assess and weigh the risk
There are different types of ranking systems. The assessment into HIGH, MEDIUM, and LOW is widespread.
High risks are generally likely to arise and have severe effects. Treatment actions for these risks should be highly visible to senior management and possibly agreed in control plans.
Medium risks may be less likely to arise, or have less severe effects, but not necessarily both. Also with medium risks it is recommended to document the reasons for not acting.
Low risks are acceptable risks that can be assessed by standard or routine procedures or even where no action is necessary.
Address and treat the risk
Now it has been identified that a customs control needs to be carried out, a decision must be made as to how to carry out the control. Together with the EU Member States, the Commission is developing a common approach on the type of control that is considered to be the most effective to meet a specific risk.
This initiative outlines the methods and moments of control. It identifies controls to be carried out at the moment of entry and exit of the customs territory / customs supervision, controls at the moment of assignment of goods for customs approved treatment or use and controls after customs approved treatment.
The type of controls that customs carry out to address the risk range from Customs supervision to documentary controls, physical controls, and audit based controls.
It also describes the control areas requiring attention, including controls by customs to protect public health and safety and controls to protect the environment.
Monitoring the system
It is necessary to monitor and review the performance in the use of risk management to assess the effectiveness and efficiency of the risk management system. Evaluation and review should be carried out on a regular basis by a regular mechanism.
The review must use information feedback from the process and lead to updating the analysis and prioritisation of control work which is carried out by customs.