These standards and best practices are consistent with the IDF Risk Modelling Steering Group’s (RMSG) strategy of growing risk understanding through adoption of open-source risk platforms, principles and practices, a policy endorsed at IDF Steering Committee level.
The IDF aims to accelerate the spread of risk understanding as a foundation for the achievement of the UN Sustainable Development Goals and economic/market development. This requires easy access to risk tools and models to promote local engagement and the integration of local data and knowledge in the modelling process. The way to achieve this is through use of open-source platforms, open data standards and interoperability.
The underlying logic is shown in the RMSG strategy paper (updated January 2020) and the IDF Development Impact of Risk Analytics report (October 2020). An over-riding principle in working with country partners is that of co-development. There should be sufficient mutual engagement that country partners are able to ‘fly solo’ at the end of the project’s lifetime, meaning that the client is able to further develop the project risk analysis without seeking additional help outside the terms of the agreement.
This approach implies investment in capacity building (see below) which may involve close work with a range of local institutions. Beyond ministries of finance, common examples of such institutions include asset-owning ministries, risk management agencies, scientific or academic institutions, and possibly also regulators and domestic private sector partners.
