The Government of Tuvalu (GoT) is undertaking a reform program to improve the effectiveness, efficiency and resilience of its overseas development assistance (ODA). This work has lead to the development of a Tuvalu National Aid Policy (2012), and updates to the Tuvalu Budget Manual (2014) and Tuvalu Government Financial
Instructions (2016) – amongst other things. To support the operation of these reforms an ODA Handbook has been developed along with a series of supporting guidance notes and tools.

This document is the supporting guidance note to assist with assessment and appraisal of policy1 risk.
The primary target audiences for this guidance note are:
■■ GoT officials who are responsible for preparing ODA proposals; and
■■ GoT officials who are responsible for reviewing and appraising new ODA proposals, including risk elements.

The Guidance Note is also intended to be used by Development Partners of Tuvalu to assist them with the process of aligning and harmonising with GoT systems – as agreed under the Paris Declaration on Aid Effectiveness. The approach outlined in the Guidance Note is consistent with the international risk management standard
ISO 31000:2009.

The approach further features an emphasis on climate change and disaster types of risk. This reflects the situation in Tuvalu where climate events (e.g. extreme tide events, drought) impact on a wide range of different ODA policies – oftentimes substantially. Moreover, in the medium and long-term future, these risks are expected to further increase under the effects of human-induced climate change – presenting as a major development challenge for Tuvalu.

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