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Tuesday, November 24, 2020

Reduce Potential Problems, Take Advantage of Opportunities

When thinking about risk management it is easy and understandable to focus extensively on disasters and accidents.

When faced with risks, the challenge is how well prepared are we to overcome risks.

Managing risk is challenging especially the continuously changing and evolving of resources that are available

Risk management help prevents organizations from entering a dangerous and uncertain territory, which could lead to a catastrophic failures. It also help ensuring the development and growth of the business.

Managing risk is challenging. The processes are continuously changing and evolving in terms of resources that are available.

The business of government is becoming increasingly more complex. In the context of this growing complexity, the significance of effective risk management becomes more and more integral to effective management.

Risks   can   challenge   the   public   sector’s   service   delivery   system   and   growth   sustainability. 

Risk assessments help government to identify and understand the root causes of risks and how to mitigate it

In the public sector, risk management is increasingly being applied across all parts of organisations, rather than being limited to financial risks, and is taking a more structured approach.

Risk management in  the  public  sector  are  aimed  at  enhancing  governance,   specifically  to  respond  to  stakeholders’  demand  for  better  control  of  public resources and to focus on exploring risks existing in government’s  contractual  relationship.

Risk management helps government to strike a balance between preventive measures and enforcement.

Effective risk management aligns with government’s objectives and aids managerial decision-making.

Risk assessments help governments to identify and understand the root causes of risks, how to mitigate them and the players involved.

Risks-the challenge is how well prepared are we to overcome it

In  fact,  managing risk practices  could  lead  to  better  project management,  effective  use  of  resources  and  better  service  delivery.

Among the internal factors that drive risk management practices in the public sector is performance measurement system, also known as the use of key performance indicators.

Performance measurement system  provide  crucial information  for  risk management  practices  initiatives  particularly  in  identifying  cause  of  risk  and  ensure visibility of results and control through organizational accountability. 

It also provide strategic information  which  can  be  considered  as  resources  under  resource-based  view,  leading  to competitive  advantage. 

The degree and variety of risks government bodies face in their daily activity is enormous and the key responsibility of these authorities is to assure the public that no current or potential risk will threat the perceived public value.

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