Fiscal constraints and an increasingly complex risk environment are challenging the federal government’s ability to craft effective policies, deliver services efficiently, and provide value for money. By reinforcing current risk management efforts with strategic and targeted best practices used by other governments and private-sector companies, federal departments and agencies can derive greater value from their program investments and strengthen mission performance.
Enhancing Risk Management In Four Key Areas
Risk management programs that truly support department or agency objectives are well integrated with the core mission of those bodies and are anchored in initiatives with specific goals. Those that simply follow a routinized set of procedures tend to lack traction at all levels of the organization and generate significant added cost while providing limited strategic benefits. In our view, many US public sector bodies could strengthen the delivery of their mission, and thus key programs and projects, by enhancing risk management in four key areas.
- Boost risk responsibility and governance to deepen organizational awareness of risks and continuous participation in solutions
- Make risk assessments count by focusing attention on undesirable outcomes and the risks that most threaten the agency’s mission
- Align risk management with the agency’s strategy by explicitly addressing uncertainties and investing in initiatives that have clear value
- Enhance value from risk management capabilities by the smart use of risk data and efficiently leveraging expertise both inside and outside the organization
Key opportunities for strengthening risk management programs