Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
26
182 WCO member states15 have signed the Agreement. Chapter 6 of the RKC General Annex
Guidelines puts its focus on the Customs control and emphasizes the need for Customs to
minimize interventions in cargo movements and maximize levels of trade facilitation by
applying risk management controls.
2.5.3 WCO SAFE Framework of Standards to Secure and Facilitate Global Trade
In June 2005 the WCO adopted the Framework of Standards to Secure and Facilitate Trade
(SAFE), known as the SAFE Framework of Standards. These standards were designed to secure
and facilitate movements of goods globally, by encouraging Customs Administrations to use a
harmonized approach, based on Customs-to-Customs and Customs-to-Business cooperation
and partnership. The Framework draws on four core elements16.
 Harmonizing the advance electronic cargo information requirements by Customs on all
shipments modes;
 Using a consistent risk management approach to address security threats;
 Performing an outbound inspection of high-risk shipments at the request of the
receiving customs administration using non-intrusive detection equipment;
 Defining benefits that Customs will provide to businesses that meet minimal supply
chain security standards and best practices to encourage strong partnership with the
trade.
2.5.4 WCO Risk Management Compendium
Recently, the WCO issued its Risk Management Compendium17 which expands the risk
management process that was previously covered in the WCO Risk Management Guide, with
principles, development of an organizational framework and the risk management processes
based on AS/NZS ISO 31000: 2009. The expanded risk management architecture is shown in as
Risk Management “architecture.” The WCO Risk Management Compendium is the most
comprehensive document with guidelines and specific risk indicator that can be used by
customs administrations to develop, implement, and improve CRM.
2.5.5 AS/NZS ISO 31000: 2009
AS/NZS ISO 31000: 200918 is a risk management standard that replaced the AS/NZS 4360: 2004
risk management standard that was prepared jointly by Australia and New Zealand. In 2005, the
International Organization for Standardization (ISO) recognized the AS/NZS 4360:2004 as the
first international risk management standard and used it for the publication of ISO 31000:2009.
This was the first standard developed by the ISO that was to serve for the management of all and
any risks at any location. The standard defines risk in general terms, as the effect of uncertainty
on objectives, and therefore it can be applied to any risk in any organization. The standard is
covering five clauses covering risk management scope, terms and definitions, principles,
framework (Figure 9) and process; and an appendix covering attributes of enhanced risk
management. The RM framework design requires implementation of 7 steps, as shown i
The design and implementation of an effective CRM are impossible without these principles.
The topics as recommendations and guidelines covered with each of these documents are
presented in Table 4.
15 WCO Membership, Last checked, September
24th, 2017
16 World Customs Organization (WCO) (2007), WCO SAFE Framework of Standards
17 World Customs Organization (WCO), 2010, Risk Management Compendium Volume 1
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