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Risk management

Organizations succeed when they have risk management strategy plan to work with. For every organization, risk management consists of systematic and coherent activities and it allows the organization to determine risk, its consequences, and to make the right decision.

Risk management can portray the organization’s performance and outcome in numbers and thus the customs organization should pass it as the organization’s internal philosophy. Any organization that operates manually or automatically can implement risk management to fulfill its tactical and strategic objectives. Also it can be used in many decision-making incidents.

World Customs Organization defines risk management in terms of providing the customs organization with intelligence regarding goods and movement posing risk and adhering to management techniques and experience steadily because the main obligations of the Customs organization is to control the goods crossing the national border and its movement and to enforce the law. As a result of implementing risk management as management philosophy, the Customs organization will not only effectively address its main obligation, but also will improve the internal resources and their allocations.

Consequently, opportunity to enhance work performance and outcome will improve and we will be able to allocate more resources on the high risk points. Risk management must not be mixed up with risk assessment. Risk assessment is complex activity consisting of risk identification and technical operation to express the risk in terms of quantitative specification.

Until recently we understood risk management is implemented only in fully automated (computerized), highly developed customs organization. However, it’s clear our understanding was misguided as the risk management program can be implemented in any customs organization.

Effective risk management can be implemented in both manual and automated organization for tactical and strategic purposes. Effective risk management demands managers and staffs to understand the risk related to their work, identify, assess, analyze, and work with the risk, control and discuss about the risk constantly. As a result they will gain a powerful weapon to make the right, efficient and correct decision.

Implementing risk management is beneficial to the customs organization in the following areas:
- The organizational goal will be achieved
- Management techniques and procedures will be enhanced
- The definition of society and business will be improved

As a result of the above benefits, following positive outcomes will occur:
- Complete utilization of the available resources; achieve more with less resources
- Concentrate appropriate resources at the high risk areas
- Facilitate trade, improved supply chain, more foreign investment

Customs organizations everywhere are facing various difficulties. Their priority remains to be making up state budget and ensuring national security. However, besides fulfilling these obligations efficiently and effectively, we must keep the legal flow of goods free of obstacles. Furthermore, the customs must create more with the available resources or even less. Thus, there is a need for brand new approach in organizing customs activities and a need for developing new strategic plan. Our traditional approach to control based on random selection of certain percentage of the goods is outdated and no longer meets the demands of the modern days.

Many people would agree there is a need to implement gradually the intelligent controls system that assesses risk and uses appropriate resources on more vital problems. At a glance, it might appear that this approach is feasible. However, implementation of risk management will involve all areas of customs activities and will affect then undoubtedly. For customs organization implementing the first phase of risk management, it might appear terrifying; but the resulting benefit is great and there is no doubt customs organization will help fulfill the goals of the government.