Is there a need to rethink approaches to risk management?

Charlie Cox, Senior Consultant at Agilisys, has written a post questioning whether or not the public sector needs to adopt a new approach to risk, given the need to deliver further efficiencies.

In his article – Rethinking approaches to risk management – Cox puts the case forward for a data driven approach to decision making and risk taking. “Insightful and data-driven approaches to risk identification, assessment and demand management can help organisations deliver the required efficiencies whilst ensuring that citizens who are most in need have access to essential services,” he says.

Cox goes on to argue that public services would do well to re-evaluate approaches to risk identification, assessment and management. “Insight into centrally held data can usually support this approach but development in capability and competency in accessing and interpreting that data remains a sticking point right across the public sector.”


Future thinking

“The future direction of public sector organisations will need to consider appetite for risk, introducing evidence-based policies and implementing the right data measures to ensure that responses are proportionate to likelihood and impact,” Cox continues.

But how can they make this happen? Cox suggests:

  • Decision makers need the right skills to utilise data, which will help with the design of decision making models
  • The approach to risk must be standardised, whilst also bringing with it a consistency in process and accountability
  • Integrated working will inevitably mean risk strategies need aligning right across organisations
  • For some, a deeper look at culture, with evidence-based risk taking being supported and encouraged at every level of the organisation

Cox concluded by saying: “As austerity continues to impact on public service delivery there is significant opportunity for public sector organisations to improve efficiency through data-driven approaches to risk. Failure to do so presents significant risk in itself: doing things ‘just in case’ is just not sustainable.”

The post can be read in full here.

Related reading