Safeguards policies are essential tools to prevent and mitigate undue harm to people and their environment in the development process. When identifying and designing a project, safeguards should help assess the possible environmental and social risks and the impacts (positive or negative) associated with a development intervention. During project implementation, safeguards should help define measures and processes to effectively manage risks and enhance positive impacts. The process of applying safeguard policies can be an important opportunity for stakeholder engagement, enhancing the quality of project proposals and increasing ownership.

Most IFIs require the application of safeguards to approve projects, and while protocols and formats vary, the issues considered are common.