The CSR: Effective management of risk needed more than
ever
21st October 2010
Alarm,
the public risk management association, is today appealing to
public service organisations to ensure that risk management is
central to their drive for efficiency.
With Chancellor George Osborne’s announcement
that local government funding will be cut by 7.1% each year for the
next four years, and additional cuts being made in education,
police and social care budgets, public service organisations need
to be prepared to meet the challenges of doing more with
less. Effective management of risk is essential in ensuring
that organisations are ready for the challenges they now face.
CEO of Alarm, Dr Lynn Drennan says “risks
facing the public sector in the light of the CSR cuts include loss
of key personnel, a reduction in the quality of services being
delivered, reputational damage and public dissatisfaction.
Organisations may also face industrial action and it is therefore
imperative that risk management is high on the senior management’s
agenda, to make sure these threats are identified and
mitigated”.
Local authorities may also face the increased
risk of fraud and economic crime. According to Alarm Chair, Tracy
Barnett, “there is a real risk of increased instances of fraud and
financial irregularity. During changes to organisational
structures, there is a strong possibility that control systems will
break down, putting the authority at risk. It is well documented
that, in times of change and dissatisfaction, instances of fraud
rise. This is particularly true when staff are disgruntled,
which is invariably the case when major restructuring or
redundancies occur”.