Our review finds that DFID staff working in conflict-affected countries are aware of fiduciary risks and are actively seeking to manage them, often in challenging circumstances. This reflects the strength of DFID’s decentralised and flexible approach to risk management. We identified a number of areas of good practice. However, these efforts are not yet anchored in a fully comprehensive risk management system - although this is under development - that ensures consistency of approach, gives clarity on risk appetite and provides a strategic overview of fiduciary risks across its high risk country portfolio. Overall we have awarded a Green-Amber rating, indicating that DFID’s fiduciary risk management in conflict-affected states is satisfactory in most areas, but requires urgent attention in others. This rating reflects DFID’s recognition of these areas of concern and its work to address them. Had it not been for these ongoing reforms, our rating would have been lower. We urge DFID to press ahead as a matter of urgency with addressing the remaining areas of weakness.
