Risk management continues to grow in importance within local authorities according to a new survey from ALARM, the national forum for risk management in the public sector.

In the ALARM Risk Management Benchmarking Survey, 78 percent of respondents say risk management is clearly embedded in strategic plans, while 81 percent report that it is explicit in their financial planning.

Comparison with previous survey responses in 2003 shows a considerable increase in the contribution that risk management is making to the achievement of corporate objectives, delivery of innovative projects, targeting of resources and improvement in service delivery.

The survey was undertaken by ALARM with support from the Audit Commission and was carried out during October and November 2006. The survey was sent to 388 organisations; with a 42 percent response rate.

The top five risks faced by local authorities are summarised as:

• Critical incidents and business continuity threats;
• Partnerships;
• Not achieving objectives/targets;
• Service delivery; and
• Housing stock transfer.

Each responding organisation will receive a report that will allow it to compare its overall risk management performance with others in the sector and view the progress it has made since 2003. They can also identify areas that might benefit from a detailed analysis, review or workshop event.

Dr Lynn Drennan, chief executive of ALARM, said: “The survey results demonstrate considerable progress in public risk management, particularly with regard to the management of internal risks. While it is clear that some external risks, such as those that arise through partnership arrangements, are being addressed, there is still room for improvement in embedding risk management within strategic decision making.”

Peter Andrews, chairman of ALARM, said: “This survey confirms the increasing sophistication of risk management in the UK public sector. It is significant that 70 percent of respondents confirmed that risk management is contributing to improved performance. In the risk financing area there are also some significant results, with increasing numbers of organisations taking higher levels of self-insurance, and the number of claims remaining static for the last two years.”

Gareth Kelly, who leads on risk management at the Audit Commission, said:
“It is encouraging that the majority of respondents to the survey indicate risk management is starting to make a significant contribution to better outcomes. Forty-three per cent of respondents also stated that risk management had made a significant contribution to their successful partnerships. While the survey results are encouraging, more needs to be done to further integrate risk management, including risks to be more outcomes-based, which factor in opportunities as well as threats.”

A full report on the findings of the survey will be published by ALARM later this year.

www.alarm-uk.org

•Date: 25th January 2007 • Region: UK •Type: Article •Topic: BC statistics
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