Additional investors

• Development Alternative Inc.
• Sasakawa Foundation
• Technical Centre for Agricultural and Rural Co-operation
• Biodiversity Transect Monitoring Analysis in Africa
• International Crops Research Institute for Semi-Arid Tropics
• Foundation for Advances Studies in International Development
• International Centre for Underutilized Crops-University of Southampton, UK
• The Philippines
• Silvoagrable Agroforestry for Europe (SAFE)
• The International Tropical Timber Organization
• Centro International de la Papa
• Institut de recherche pour le développement–France
• International Livestock Research Institute
• Swiss Federal Institute of Technology
• Uganda Forest Sector Co-ordination Secretariat
• Technical Committee of the Global Water Partnership
• Oxford Forestry Research Institute – UK
• Centre for Development Research
• Donner Foundation
• Eastern and Central Africa Programme for Agricultural Policy Analysis
• Indian Council for Agricultural Research
• Brazil
• Global Dimensions Trust
• International Foundation for Sciences
• Norwegian Agency for Development Cooperation
• Third World Organization for Women in Science

Board statement on risk management

The Board of Trustees of the World Agroforestry Centre has responsibility for ensuring that an appropriate risk management process is in place to identify and manage major and significant risks to the achievement of the Centre’s business objectives, and to ensure alignment with CGIAR principles and guidelines as adopted by all CGIAR centres. These risks include operational, financial and reputation risks that are inherent in the nature, modus operandi and locations of the Centre’s activities. They are dynamic owing to the environment in which the Centre operates. There is potential for loss resulting from inadequate or failed internal processes or systems, human factors or external events. Risks include low impact science (and therefore irrelevance); misallocation of scientific efforts away from agreed priorities; loss of reputation for scientific excellence and integrity; business disruption and information system failure; liquidity problems; transaction processing failures; loss of assets, including information assets; failures to recruit, retain and effectively utilise qualified and experienced staff; failures in staff health and safety systems; and failures in the execution of legal, fiduciary and Centre responsibilities.

The Board has adopted a risk management policy – communicated to all staff – that includes a framework by which the Centre’s management identifies, evaluates and prioritises risks and opportunities across the organisation; develops risk mitigation strategies which balance benefits with costs; monitors the implementation of these strategies; and periodically reports to the Board on results. This process will draw upon risk assessments and analysis prepared by staff of the Centre’s business unit, internal auditors, Centrecommissioned external reviewers and the external auditors. The risk assessments will also incorporate the results of collaborative risk assessments with other CGIAR Centres, System Office components, and other entities in relation to shared risks arising from jointly managed activities. The risk management framework seeks to draw upon best practices, as promoted in codes and standards promulgated in a number of CGIAR member countries. It is subject to ongoing review as part of the Centre’s continuous improvement efforts.

Risk mitigation strategies include the implementation of systems of internal controls which, by their nature, are designed to manage rather than eliminate risk. The Centre endeavors to manage risk by ensuring that the appropriate infrastructure, controls, systems and people are in place throughout the organisation. Key practices employed in managing risks and opportunities include business environmental scans, clear policies and accountabilities, transaction approval frameworks, financial and management reporting, and the monitoring of metrics designed to highlight positive or negative performance of individuals and business processes across a broad range of key performance areas. The design and effectiveness of the risk management system and internal controls is subject to ongoing review by the Centre’s internal audit service, which is independent of the business units, and which reports on the results of its audits directly to the Director General and to the Board through its Audit Committee.

The risk management framework is being implemented in 2004, as an integral part of the Centre’s Strategy and Business Plan. The Board expects to be able to report on the implementation of this framework from 2005.