BUSINESS CONTINUITY
In times of emergency it is crucial that public services can still be delivered – despite the cuts. PSE discussed local authority risk management withCarolyn Williams and Steve Fowler.
L
ocal government risk managers have got their work cut out for them at the
moment – not only do they potentially face having to deal with the effects of climate change, the potential for industrial ac- tion, and the consequences of rapid and untested service transformation, but they have to do it all with considerably reduced finances.
They are also themselves part of the dread- ed ‘back office’ staff among the most likely to face the axe as councils try to squeeze every penny.
This is a dangerous move and a huge false economy, argues Steve Fowler, chief exec- utive at the Institute of Risk Management.
He said: “Risk management becomes more important rather than less as funding be- comes tighter.
The under-valued role of risk managers
Risk management requires a detailed knowledge and understanding of the or- ganisation and all of its processes and it is “a truly multi-disciplinary profession”, according to the IRM.
Individual risk managers will be respon- sible for:
• Setting policy and strategy for risk management;
• Being the primary champion of risk management at strategic and opera- tional levels;
• Building a risk-aware culture within the organisation, including co-ordi- nating the appropriate education and training;
• Establishing internal risk policy and structures for specific units;
• Developing risk response processes, including contingency and business continuity programmes; and
• Preparing reports for senior directors and stakeholders.
58 | public sector executive Mar/Apr 11
“The danger is that an organisation - whether it be public sector, third sector or commercial – will take short-term deci- sions and look to cut areas which are not revenue earning, such as risk governance and control.
“This is because it is very hard financially to justify a risk management function; however, where risk management does not exist, its absence tends to be noted retro- spectively following a major failure within that system.
“Governments in particular are open to the impact of those sorts of failures.”
Carolyn Williams, head of thought leader- ship at the Institute of Risk Management, added: “The tough financial climate is driv- ing everybody’s thoughts at the moment.
“People dealing with risk in the public sec- tor will be having to deal with new risks which arise from the loss of income, as a result of reduced government spending,
Carolyn Williams Steve Fowler
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whilst demand for services increases.
“An example of this will be a rise in de- mand for services aimed at the unem- ployed to help them get back into work.
“There is also the general disruption and reorganisation which has come with a new government’s changes in direction, which risk managers have to deal with alongside all of the other managers in local authori- ties. It is a real question of keeping track of your risks as conditions change.”
How can local authorities navigate their way through the risks associated with cuts?
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