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[Title Page]

Contents

I. Overview 7

1. Research Background 9

2. Research Purpose and Scope 12

1) Analysis of previous research and literature on risk management 12

2) Analysis of risk management status of foreign donor institutions 12

3) Analysis of risk management status of KOICA projects 13

4) Development of a risk management measure for KOICA projects 13

3. Research Method 13

1) Analysis of previous research and literature on risk management 13

2) Analyzing risk management status and cases of foreign donor institutions 16

3) Analyzing risk management status and risk management cases in projects 19

3) Suggesting risk management methods for KOICA projects and developing guidelines 21

II. Understanding Risk Management 23

1. An Overview of Risk 26

1) Definition of risk 26

2) Essential matter for consideration in defining risk 27

3) Risks in international development projects 29

2. Risk Management Overview 31

1) The definition of risk management 31

2) The purpose of risk management 32

3) The Principles of risk management 33

3. Risk Management Process and Methodologie 34

1) Risk management process 34

2) Risk management methodologies 41

4. Risk Management in The Field of International Development Cooperation 42

1) Risk and international development projects 43

2) Risk management trends in international development projects 44

5. Conclusion 45

1) Summary 45

III. Analysis of the Risk Management Status of Foreign Donor Institutions 47

1. Risk Management of Foreign Donor Institutions 50

1) Definition and categorization of risk 51

2) Definition and approach of risk management 52

3) Risk management procedures and methodologies 53

2. AusAID(currently DFAT) Risk Management Strengthening 55

1) Background of strengthening risk management in Australia 56

2) Process of strengthening risk management 59

3) Results of strengthening risk management 66

4) Characteristics of risk management of Australia 75

5) Future challenges of risk management 78

3. Conclusion 80

1) Summary 80

2) Recommendations for risk management in KOICA projects 82

IV. Analysis of Current Status of Risk Management on KOICA Projects 87

1. Method and Process of Analysis 90

1) Subject of the analysis of the current risk management status 90

2) Framework for analysis of the current risk management status 92

3) Method and procedure of collecting data 94

2. Results of Analysis 97

1) Results of the current status of main risks 97

2) Results of analysis of risk management activities 103

3) Risk management problems in KOICA projects and methods for improvement 116

3. Conclusion 120

1) Recommendation for risk management in KOICA projects 120

V. Recommendation for Risk Management on KOICA Projects 125

1. Introduction of Risk Management on KOICA Projects 128

1) Management of risk and uncertainty 128

2) Improvement of organization culture 129

3) Institutional systematic risk management 130

2. Risk Management on KOICA Projects 132

1) Definition and range of risk management 132

2) Risk classification 132

3) Principles of the risk management of KOICA projects 135

4) The framework of the risk management 135

5) The risk management roles and responsibility 142

3. Risk Management System of KOICA Projects(New) 148

1) Collection and creation of the risk management data(Use of risk register) 148

2) Appointment of risk owner 149

3) The appointment of headquarters risk management team and overseas offices risk management personnel 149

4) Addition of the risk management plan in main project documents 151

4. Risk Management of KOICA Projects by Stage 157

1) Identification and Formation Stage - prior research 157

2) Planning - implementation discussion 158

5. The Introduction of Guideline 161

1) The main contents 161

2) Utilization 162

6. Limits of the Research and Proposal for the Subsequent Research 163

Appendix 1. Guideline for Risk Management on KOICA Projects 167

Terminology 171

I. Overview 172

II. Risk Management Framework 177

III. Standard Procedure and Methods of Risk Management 185

IV. Risk Management Practice Plans 209

Appendix 2. Reference 225

Copyright 234

[Back Cover] 235

List of Tables

〈Table 1-1〉 Institutions and Interviewees in Filed Research 19

〈Table 1-2〉 Types of Documents to Be Analyzed by Project Procedure 20

〈Table 2-1〉 External and Internal Factors of Organization 35

〈Table 2-2〉 COSO ERM Process 38

〈Table 2-3〉 Qualitative and Quantitative Risk Management Methodologies 42

〈Table 2-4〉 Internal and External Factors of the Project Environment 43

〈Table 3-1〉 Definition and Categorization of Risk 51

〈Table 3-2〉 Definition of Risk Management 52

〈Table 3-3〉 Risk Management Procedures and Characteristics 54

〈Table 3-4〉 AusAID Status Before Strengthening Risk Management 61

〈Table 3-5〉 Strengths in Treating Risks by Main Agents 73

〈Table 4-1〉 Main Stakeholders of KOICA Projects 92

〈Table 4-2〉 Frame for Analysis of Main Risks 93

〈Table 4-3〉 Frame for Analysis of Risk Management 94

〈Table 4-4〉 Types of Documents by Project Process 95

〈Table 4-5〉 Summary of In-depth Interview to KOICA staff 96

〈Table 4-6〉 Main Risks in KOICA Projects by Process 99

〈Table 4-7〉 Main Influences when Risks Become Issues 102

〈Table 4-8〉 Current Risk Management Role by Stakeholder 104

〈Table 4-9〉 Risk Management Activities in Identification and Planning 106

〈Table 4-10〉 Risk Management Activities in Implementation 111

〈Table 4-11〉 Risk Management Problems and Improvement Measures 116

〈Table 4-12〉 Endeavor to Prevent Risks from Becoming Problems 121

〈Table 5-1〉 Summary of Risk Management Subjects and Work by Stage 159

List of Figures

[Figure 2-1] The Copenhagen Circles 30

[Figure 2-2] ISO 31000 Risk Management Framework 35

[Figure 2-3] ISO 31000 Risk Management Process 36

[Figure 3-1] Organization of Risk Management Section 62

[Figure 3-2] Elements of Change Management 64

[Figure 3-3] Risk Management Framework of AusAID 67

[Figure 3-4] Risk Management Procedure of AusAID 68

[Figure 3-5] Assessment Pillars of Due Diligence 69

[Figure 4-1] KOICA Project Process in This Research 91

[Figure 4-2] Current Risk Management Status Analysis Framework 93

[Figure 4-3] Method and Process of Collecting Materials 94

[Figure 5-1] Risk Classification of KOICA Projects 134

[Figure 5-2] KOICA Risk Management Framework 136

[Figure 5-3] Risk Management System of KOICA Projects 143

[Figure 5-4] Risk Management Activities in Prior Research 158

[Figure 5-5] Risk Management Activities in Implementation Discussion 159

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