Risk Assessment

Early in your program design, go through this Rapid Risk Checklist to make sure that you’ve identified and can mitigate any risks associated with cash-based programs.

There are a number of risks associated with any kind of asset transfer program. For cash-based programs, common risks include the following:

Diversion: Risks that cash transfer will be used for unintended purposes, including anti-social uses.

Fraud: Risks of corruption or other fraudulent activities.

Inclusion/ exclusion: Risks that people will be included when they do not qualify, due to coercion, political force, nepotism, or simply poor targeting (wrongful inclusion); OR, risks that people will be excluded when they do qualify.

Inflation/ indirect beneficiary impact: Risks that prices will increase or inflation or exchange rates will fluctuate, thus making it more difficult for both beneficiaries and non-beneficiaries to access the same quantity and quality of goods and services.

Other market impact: Risks that markets will be distorted, other than price distortion. This might include certain vendors being pushed out of the market, power dynamics being exacerbated, or other impacts on market actors.

Loss: Risks of loss of transfer amounts for any reason.

Security/ protection: Risk of physical security problems or abuses of basic protection, rights, and dignity for beneficiaries, vendors or staff.