Risk is inevitable in international development. Progress may be lost because of natural or man-made crises or resources may be misused because of weak governance and accountability. These risks must be assessed and managed. They also must be balanced against the risk of doing nothing at all.
CIDA's success depends on its ability to identify clear, achievable, and measurable results; understand the risks involved; and put measures in place to monitor and reduce risks. These steps will maximize the achievement of sustainable results.
The Agency's thematic priorities set out a clear direction for CIDA programming. In 2010, CIDA published strategies mapping out the concrete results Canada's aid will achieve in developing countries, and through key international institutions and initiatives.
Based on these strategies, CIDA developed frameworks against which it monitors progress and manages the delivery of results.
For all investment decisions, the Agency performs a thorough analysis of risks, including fiduciary concerns, natural disasters, security, and partner capacity risks, and it identifies mitigation strategies.
Ultimately, managing risks increases the effectiveness of CIDA's efforts to achieve real development results.
Corruption can occur in any country; however, the risk is greater in developing countries where partners and institutions often have weak capacity.
CIDA will not tolerate fraud and corruption. CIDA has a robust set of controls to prevent the mismanagement of funds and to ensure aid dollars go to the right people for the right reasons. CIDA only invests funds where it can provide reasonable assurance that it can assess, monitor, and manage risks during project implementation, ensuring these funds are used for their intended purpose.
CIDA also works with developing countries to build good governance and to help them build their own systems to manage public finances in an open and accountable way.
In Mali, for example, CIDA works to strengthen judicial control and inspection, establish a system to combat corruption, and build the country's audit office.