I feel it’s important we regularly remind ourselves of the value risk management brings to an organisation - particularly during these challenging times.

Risk management is an integral part of good corporate governance and can bring many benefits to an organisation.

Clear identification, assessment and management of threats and opportunities will support an organisation in:

• Achieving its objectives and better delivering on intended outcomes.
• The effective use of its resources.
• Directing improvements to service delivery, and to customers, partners and communities.

Public service organisations are responding to a crisis, as well as meeting societal need the best they can.

We are working in times of uncertainty while managing major change. At the same time, we are expected to deliver services in new and innovative ways, often through partnership working. All of this attracts both threats and opportunities that need to be managed if desired outcomes are to be achieved.

The benefits of risk management

Risk management is not simply a compliance issue, but rather a way of viewing our operations with a significant impact on long-term viability. It helps us demonstrate openness, integrity and accountability in all of our dealings.

Here are some widely accepted benefits of risk management to remind everyone how important it is – and how important your work is to your organisation.

Risk management reduces the risk and impact of:

• Things going wrong.
• Financial losses.
• Service disruption.
• Threats to employees’ and the public’s health and safety.
• Bad publicity.
• Claims for compensation.
• Unforeseen events.
• Missed opportunities.

Risk management helps our services perform better by:

• Protecting reputation and stakeholder confidence and trust.
• Supporting the achievement of an organisation’s objectives.
• Increasing effectiveness and programme and project delivery.
• Better delivery of intended outcomes.
• Improving identification of threats and opportunities and the management of risk.
• Demonstrating good governance.
• Improving operations efficiency.
• Protecting budgets from unexpected financial losses.
• Protecting assets.
• Increasing the ability to secure funding.
• Ensuring a balance between risk taking and opportunities in the business environment.
• Ensuring statutory obligations and policy objectives are met.
• Better decision-making and planning.
• Improving organisational resilience.
• Enabling the organisation to anticipate and respond to change positively.
• Enhancing political and community support.

Kerry O’Donovan, Risk Analyst, Transport for Wales and ALARM Board Director.