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Early warning indicators
Early warning indicators are an essential element of monitoring since they help to identify potential irregularities before they materialize. Indicators are also relevant to corruption risk assessment, as part of any comprehensive risk management system. To act as an early warning system, indicators need to be tailored to the underlying risk assessment tool. For example, a Value Chain Analysis tool needs to have defined early warning indicators at every step of the value chain, i.e. tariff abnormalities can indicate distortions in decision-making in the policy-making phase.
Well-defined corresponding measures should be in place and ready to be initiated in the case that a risk emerges. For example, in the above case, an independent audit might serve to investigate if tariffs were appropriately determined. You will find an overview of possible indicators for the Value Chain Analysis in the additional readings.
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