Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
83
framework), implementing and practicing risk management, monitoring and review, and
continuous development. It’s a common practice in the OIC MS CAs to organize the CRM as a part
of other organizational departments. The practice shows that the higher the structure in which
the CRM is placed, the more mandate and power it will have, and more commitment will be
ensured on all organizational levels.
OIC MS CAs are typically structured along functional and geographical lines, and staff
classification is based on historical contingencies rather than responsibilities, competence and
work value. Such functional groupings may no longer be appropriate and may work against the
adoption of modern Customs practices and techniques. It is difficult to rapidly modify
organizational structures, reporting mechanisms, and remuneration grades.
Many of the OIC MS CAs are in the process of implementation or planning modernization
projects. The start of any modernization project is accompanied by a reflection of the
institutional organization reforms and project risk management. Organizational reforms are
particularly important; the CRM has always been identified as a priority and introduced as part
of overall strategies to modernize the CA. The modernization projects of CAs are an occasion to
rationalize the management by optimizing the overall organization.
The CRM Department is a unit responsible for the process of risk management. It collects and
processes information necessary for planning and organizing risk management activities. Based
on performed analyses it profiles risks and establishes criteria for selective examination. It
supervises the process and analyses undertaken actions. It drafts ad-hock, periodical and
permanent reports on the successfulness of existing criteria, and depending on the achieved
results; it can recommend modification or termination of existing criteria. It co-ordinates risk
management activities with the other organizational units within the CA. It organizes periodic
meetings, analyses statistical information and data in the CA to develop an assessment of
possible problems, trends, and targeting strategies and it undertakes draft measures to improve
the service’s efficiency in:
 Identification and risk profiling: Coordinated risk analysis based on various sources of
information. Based on this analysis, a risk profile should be defined and then used for
different activities involving a certain level of risk, for example when processing
declarations, approvals, etc.;
 Reduction of risk: Implementation of measures to minimize future risks and propose
measures to handle risks certain customs operations. Strategic risk profiling will target
certain high-risk areas for additional control and will thus reduce the number of
violations over time.
Intelligence Risk Management - is the corner-stone of CRM cycle -selectivity: the use of
information & intelligence, and subsequent risk analysis, increases the possibility of discovering
irregularities in entities/commodities that are selected for examination while facilitating the
free flow of the persons. The intelligence combined with CRM has a significant impact on trade
facilitation.
The role of customs operational staff in Intelligence and CRM:
 Developmechanisms for customs operational staff to carry out criminal intelligence and
investigation activities;
 Integrate criminal intelligence and investigation capacities into customs operational
concepts;
 Develop further the tactical, operational and strategic risk analysis methods.