Risk management

Background

The States, like other organisations, face risks to the delivery of their

objectives. Processes to identify, assess, prioritise and manage risk are

fundamental to achieving goals. 

In 2014, the States used the services of Marsh Risk Consulting (Marsh), a global insurance broker and risk management firm, to provide initial support in

developing its Enterprise Risk Management (ERM) framework. Subsequently the Chief Executive asked the Chief of Police to assume leadership of risk management for the Corporate Management Board (CMB).

Between 2015 and 2017, the C&AG noted concerns about risk management in a range of other reports.

Scope

The review considers:

• the effectiveness of corporate arrangements for managing risk. This includes arrangements for escalation of risks from departments and other bodies where their accounts are consolidated in the financial statements of the States
• the effectiveness and embeddedness of arrangements for risk management within departments; and
• areas where improvements can be made including the scope for achieving efficiencies.

Conclusions

The C&AG welcomes the steps the States have taken to develop their approach to risk management. From a standing start, the States have developed and implemented a corporate framework for risk management with appropriate accountabilities.

However, risk management is not yet adequately embedded across the States so that it is integral to everything that the States do and an inherent part of a shared culture across government.