London, 14 June, 2011 – Marsh has produced a major report to assist public sector organisations improve their risk management policies and processes. The report, Preparing the Local Public Sector for Risk Governance: First Steps towards an ISO 31000 Framework, is based on the outputs of a roundtable organised by Marsh in April 2011 on public risk governance and attended by senior members of public sector organisations throughout Europe.

Following an overview of ISO 31000 – the new ISO standard which provides guidelines for risk management – the report reviews in detail the standard’s 11 principles, explains its framework for the implementation and continuous improvement of a risk management process, and discusses a range of risks faced by public sector organisations and options for their management or mitigation.

The report concludes with a 10-point checklist developed by participants at the roundtable for the successful implementation of a risk management model in the public sector. The checklist includes:

• Building a risk register, which involves assessing what is already being done in terms of risk management, and identifying the risks that the risk manager has both direct and indirect responsibility for;
• Simultaneously setting an organisational risk management framework - methods, processes, roles definition, and responsibilities - and a basic operational framework that could be applied to any type of risk;
• Developing business resiliency planning and being prepared for the possibility of a disaster by identifying and assessing the disaster risk, and analysing possible scenarios.

Commenting on the report, Dr Lynn Drennan, CEO of Alarm, the public risk management association said: “At a time of unprecedented cuts in public expenditure across Europe, public service organisations need effective risk management now, more than ever before. ISO 31000 provides a framework and guidance that helps organisations to establish, embed and improve their risk and governance structures.

“Examples of good practice can be found in almost every sector and it is vital that those responsible for the management of risk share such knowledge and experience, for the benefit of others who may be struggling to find a solution to problems facing their communities.”

Philippe Auzimour, Head of Marsh’s Public Sector Practice in Europe, the Middle East and Africa said: “Public sector managers are increasingly faced with a multiplicity of risks, requiring a robust response built around prevention, risk control and strengthened resiliency.

“Our report highlights the massive benefits which the public sector can secure through adoption of a framework for public risk governance based on ISO 31000. We are particularly grateful to the managers who attended our workshop and whose insights and experiences are included in the report.”