Accounting

Asset and Risk Management

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[Affiliations]

Risk management , or more rarely the risk management is the discipline that seeks to identify , assess and prioritize risks related to activities of an organization , regardless of the nature or origin of these risks, for treat methodically coordinated and economically, so as to reduce and control the probability of unwanted events , and reduce the potential impact of such events. As such, it is a component of the business strategy that aims to reduce the probability of failure or uncertainty of all the factors that may affect its business plan.

THE IMPLEMENTATION OF TRADE FACILITATION

Risk management

The experience of New Zealand

To fulfill their responsibilities for border management and revenue collection, customs administrations operate in a context of uncertainty and change. It is not easy to know in advance, for example, how many people, vehicles or goods break the law in passing a border, or how: trespassing, drug trafficking, non- payment of customs duties, etc. It is not feasible to manually control each person, vehicle or goods entering or leaving a country.

Indeed, countries must develop methods to identify activities or cross-border transactions that could pose risks. Given their experience in border management, customs administrations are in a unique position to assess the risks, allowing them to intervene effectively in the supply chain without hampering legitimate trade. This note explains how risk management has been integrated into culture, policy and operational practice of Customs of New Zealand, through a standardized method and significant efforts in the field of information.

EVOLUTION OF RISK MANAGEMENT BY CUSTOMS

Between its establishment in 1840 and 1970, the Customs Administration New Zealand relied on a system of border management based on the documents, which required compliance with procedures 100 percent: all that entered the countries was examined. Treatment of goods...