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Any organization benefits from the application of a risk management strategy since this benefits organizational performance as a whole. Risk management in any organization consists of well-defined steps which, when taken in sequence, support better decision making by contributing to greater insight into risks and their impacts.

For Customs administrations adoption of risk management as an organizational philosophy is essential since it provides quantifiable improvements in the effectiveness and efficiency of the administration as a whole. Risk Management can operate in any organization with manual or automated application ranging from tactical to strategic approaches. It can be applied to nearly every decision-making situation.

The WCO defines Risk Management as the systematic application of management procedures and practices providing Customs with the necessary information to address movements or consignments which present a risk. This focus is necessary since the fundamental task of the Customs is to control the movements or consignments across national frontiers and ensure compliance with national laws. When adopted as a management philosophy it enables the Customs to not only carry out its key responsibilities effectively but also organize its resources and deploy them in a manner so as to improve its overall performance.