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Society for Risk Analysis Meeting 58 December 2004 Improving Government Risk Management and Appraisa

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Public more aware & want more say in risk matters. Better educated & aware ... Learning from public/private sectors. Treasury Chief Secretary Reports to Prime ... – PowerPoint PPT presentation

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Title: Society for Risk Analysis Meeting 58 December 2004 Improving Government Risk Management and Appraisa


1
Society for Risk Analysis Meeting5-8 December
2004Improving Government Risk Management and
Appraisal of Risk to the PublicBrian Glicksman
2
Outline of Presentation
  • Context
  • The Risk Programme
  • Key issues and Actions
  • Managing risks to the public
  • Appraisal of risks assessing risk perceptions
  • The future

3
Context for Government risk management
4
We are taking on more risk - focus is on delivery
  • Aiming high targets focus us on outcomes
  • Achieving outcomes is complex and hard-work
  • Will only happen if risks that can knock us off
    course are anticipated, and managed well

5
Project failures
  • Departments continue to suffer, particularly in
  • New complex IT systems
  • Traditional procurement programmes

6
We face new threats...
7
Pace of change brings both opportunity and
uncertainty...
8
Connections increase exposure...
9
And risk matters more to people...
10
Public more aware want more say in risk matters
  • Better educated aware
  • Demand high standards and actions to address
    concerns
  • Demand more openness and clear evidence
  • Demand more influence and choice
  • Prepared to litigate

11
Trust is an issue
Trust in individuals and institutions, 2003
Family Doctors, Teachers, Local Police
Low trust means less support for innovation and
change more demand for regulation
Greenpeace/ Amnesty
Senior Civil Servants
Politicians
Business Leaders
Real Estate Agents/ Red-top journalists
Source Market Opinion Research International
12
So change needed
13
Risk Programme -improving government capability
  • 2 yr programme of change
  • Civil Service Management Board Group
  • Cross-government networks
  • Learning from public/private sectors
  • Treasury Chief Secretary Reports to Prime Minister

14
What is our Aim?
Capabilities
  • Embedded risk management - skills, guidance,
    structures, incentives, culture
  • Effective - anticipation, decision-making,
    preparedness, crisis handling, communications,
    coordination fewer adverse reports from
    auditors/politicians
  • Policies, targets, projects are being delivered
    public safety, confidence, trust are being
    achieved

Risk Handling
Better outcomes
15
Innovation and well-managed risk taking
New endeavours/ stretching targets
Operational risk
External threats
Self imposed risk
Current performance
16
Key Challenges
  • Leadership
  • Embedding in business processes
  • Risk in policy making
  • Managing risks with partners
  • Managing risks to the public
  • Learning from good practice

17
Managing risk to the public
18
Building public trust and understanding
  • Principles
  • Openness transparency
  • Involvement
  • Proportionality and consistency
  • Evidence for policies, actions, decisions
  • Responsibility and choice
  • Use of arms length bodies
  • Early and regular communication

19
Implementing the principles
  • Involving Government networks
  • Communications information directors
  • Decision making - policy makers
  • Evidence scientists economists and other
    analysts
  • Wider engagement academics, stakeholders
  • Guidance
  • Supplement to HMT guidance on investment
    appraisal
  • A tool for structured assessment of public
    concerns
  • Communicating Risk to the Public

20
Proportionality and consistency
  • Guidance on appraisal of risks to the public
  • Current consultation on this new guidance
  • Guidance includes
  • benchmark for Government spending to prevent a
    fatality (1m 1.5m from road transport
    willingness to pay (WTP) studies) and to
    reduce harm of 20-30k per Quality Adjusted Life
    Year (QALY)
  • Consideration for public and expert risk
    perceptions
  • Assessment tool for public concerns

21
Consultation on concerns
  • Proactive, two-way communication
  • Consultation to capture structured, informed and
    considered views
  • Challenge and varied perspectives valued in
    building the evidence base
  • Not from a self-selected source
  • Not groupthink
  • Not media judgements

22
Assessment Framework
  • Categories of concern
  • Hazard familiarity understanding
  • Effects equity dread
  • Management control trust
  • Levels of concern
  • 1-5 to indicate increasing degree of concern

23
Concern assessment framework
Eg Effects Fear (Dread)
 
24
Decisions on managing risks to the public
CBA, including
Societal Concerns
25
Future culture change
  • Everyone is a risk manager
  • Knows the risks faced, how to manage them, and
    how this links to achieving the organisations
    objectives
  • Looks for opportunity
  • Clear on risk appetite
  • Knows when to escalate risk
  • More risk-based service provision
  • Clear objectives with
  • Resources targeted at risks
  • Risks to public managed effectively
  • Proportionate action
  • Taking account of public perceptions
  • Communicating effectively

26
For further information .

www.risk-support.gov.uk email to
risk-support_at_hm-treasury.gov.uk
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