Public sector risk management faces particular challenges due to increased complexity, partnerships, and public involvement in strategic decision making. A successful enterprise risk management program would involve identifying risks through qualitative and quantitative assessment, monitoring risks, and considering actions like terminating, tolerating, treating, or transferring risks. Senior management buy-in is crucial for an effective risk management program.

1. Public Sector Enterprise Risk Management and Why It’s Important Internal Audit, Risk & Governance The Hatton, London, 18th May 2009 Dr David Hancock MBA Public Sector Risk Manager of the Year 2008/09

3. What is meant by a Risk? “ The uncertainty of outcome, whether positive or negative threat, of actions and events. It is the combination of likelihood and impact, including perceived importance.” (HM Treasury, The Orange Book, 2004) A statistical inevitability?

5. The Risk Process Set Objectives Monitor the risks Report movement of the risk Identify Threats and Opportunities to Objectives Assess the risks associated with each threat and opportunity ( Inherent ) and map exposure (PxC) Consider actions to manage risk terminate, tolerate, treat, transfer Reassess the risk ( Residual ) and remap (PxC) in light of actions in place

6. Response to risk… the 4 Ts Terminate – Do things differently and thus remove the risk Tolerate – Nothing can be done at a reasonable cost to mitigate the risk or the likelihood and impact are at a reasonable level What about ethical and moral acceptance? Treat – Take action to control the risk either by reducing the likelihood of the risk developing or limiting the impact it will have on the project Transfer – Some of the financial risk may be transferable via insurance or contractual arrangements or accepted by third parties

14. The performance management framework has moved to a process of negotiation which is changing the relationship and the dynamic between central and local government. Central government has responded by attempting to adopt a more citizen-focussed and community-centred approach to public policy. ‘ Challenging perspectives’ - NLGN What are the Particular Challenges ?

16. The need for holistic thinking I’m glad the hole isn’t in our end!

17. Understanding what is meant by success is crucial

18. Corporate Risk register

20. OGC Gateways and Risk

22. Any Questions ? “ When all you have is a hammer, everything looks like a nail” - Japanese Proverb