Are You at Risk?

I recently watched an interesting movie that portrays the end of the world as we know it. In this flick, there were earthquakes, floods, storms, fires, and every other catastrophe one can imagine. (And they were not just in California!) Talk about a public works nightmare!

As overblown as the movie was, it did inspire thoughtful questions about our infrastructure, and what kind of risks that government agencies face in managing our utility and transportation systems, as well as public facilities. What are the risks from natural catastrophes, major asset failures, or even terrorism? The consequences can affect customer satisfaction, commerce, public safety, environmental quality, and regulatory compliance, and certainly create legal and political issues. We have all read about the water main breaking on Main Street USA, the economic impact of a main road closure, and the dire consequences of a bridge collapse.

Risk management is becoming a core factor in many government agencies and the services they provide. It is an organization-wide issue, and needs to be addressed as such. Questions you should ask:

• What are your critical assets?
• What events can happen? What can go wrong?
• What is the probability of any individual event happening?
• What is the consequence of the event?

Answers to these questions are integral to any risk management plan, and, more importantly, can lead to better decision-making, prioritized projects and expenditures, improved response and recovery plans, and, hopefully, improved customer service.

Certainly, risk management and planning is not an easy endeavor. It requires having the right tools, the correct supporting data, executive support, multi-departmental involvement, and probably outside consultants to bring all of the parts together. Given the potential consequences, can your organization afford not to address this topic?

Does your agency have a risk management plan in place? Share your thoughts…

Posted by Bob Benstead, Vice President Strategic Planning, Public Sector Group