Integrate risk management-IAA tells public sector organisations

The Director-General of the Internal Audit Agency, Mr. Patrick Nomo has called on public sector organizations to integrate risk management into their daily operations in order to reduce risk.
“I am sure you will agree with me that there is no such thing as a risk-free environment. However, many risks can be avoided, reduced or eliminated through effective risk management practice. Risk management is an explicit function of management without exception. Therefore, public sector organizations should integrate risk management into their everyday work”, he noted.
This he said, would improve service and business practices in the public institutions in the country.
Mr. Nomo made this passionate appeal at a two day forum organized by the IAA in Accra to raise awareness on the need to manage risks in their daily operations in public institutions in the country.
Dubbed- “Risk Management in the public sector, the role of Internal Auditing”, the forum seeks among other things to sensitize the public sector institutions on the role of internal auditing in fostering good corporate governance, provide the basic tools required by managers to manage risks in the public sector and to challenge
Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs), to implement a structured risk management framework to help them mitigate the risk they face.
Participants at the forum would be introduced to the basic principles, concepts, methodology and tools required for effective risk management in the public sector. The Chairman of the Internal Audit Board, Mr. S.K.A Crabbe underscored the importance of risk management in the public sector institutions as a measure to eliminate fraud whilst improving on efficiency.
According to him, unlike the private sector, public organizations are generally slow-moving when it comes to change, making it difficult to get any sort of risk management plan up and running, hence the need to manage risk in the public sector.
“Risk management is not the preserve of private sector organizations, but public and central government as well. Senior management must be made aware of the opportunity cost of not managing risk. Internal control systems translate risks into systems, such as early warning mechanisms and compliance violation alerts”, he noted.
The Chief of Staff, Mr. Kwadwo Mpianim, who was the Chairman for the occasion, in his address debunked the notion that risk is taken only as a natural phenomenon of which nothing can be done.
According to him, effective governance and public accountability are essential in enhancing credibility and effectiveness of government apparatus.
He therefore, challenged all Chief Executive in the public sector to ensure that their respective organizations develop and implement risk management frame work by June 2009, with clearly defined responsibilities for risk owners.