Public Sector Officials Charged with Ensuring Safety and Efficient Use of Resources

Introduction

In a move to enhance transparency and accountability, public sector officials have been tasked with ensuring the safety and efficient use of public resources. The government has recognized that risk management is an integral part of sound public sector governance.

Risk Management Policy Statement

According to the Government, risk is inherent in every objective and operation of Public Sector Entities (PSEs). The government considers risk management as an essential part of public sector governance, providing assurance towards achieving its objectives across different sectors. This leads to effective and efficient government performance, increased stakeholders’ confidence, and better services to citizens.

Guidelines for Developing and Implementing Institutional Risk Management Framework

The Ministry of Finance and Planning has taken an active role in providing guidance and support on the development, implementation, and enhancement of risk management practices across PSEs. Accounting Officers of all PSEs are required to adopt and implement effective risk management practices in their respective entities.

Key Guidelines

• Develop a risk policy, culture, and structure that facilitates identification, recording, and monitoring of risks
• Integrate the risk management process into strategic, budgeting, and operational business planning activities
• Establish a risk register to record, rate, profile, monitor, and report identified risks
• Implement procedures in line with ISO 31000:2018 or other industry regulators’ standards

Adoption of Risk Management Standards

PSEs are expected to comply with minimum requirements outlined in the guidelines, which are written in line with the ISO 31000:2018 Risk Management – Principles and Guidelines. Public entities should also adhere to risk management standards issued by their industry regulators.

Implementation Requirements for PSEs

All PSEs are required to develop, implement, and enhance a risk management framework and process that ensures:

• A risk policy, culture, and structure that facilitates identification, recording, and monitoring of risks
• Procedures in line with ISO 31000:2018 or other industry regulators’ standards
• Integration of the risk management process into strategic, budgeting, and operational business planning activities
• A risk register to record, rate, profile, monitor, and report identified risks
• Established processes for monitoring, reviewing, reporting, and enhancing risk management and governance systems
• Procedures for incident management

Implementation Roles and Responsibilities

Key Roles and Responsibilities

• Permanent Secretary - Treasury (Paymaster General): overall responsibility for ensuring effective application of risk management processes, procedures, and practices
• Internal Auditor General: responsible for ensuring all internal auditors perform Risk-Based Internal Auditing, issuing guidelines and directives on public sector risk management, providing support and guidance to PSEs, conducting reviews and assessments, and receiving quarterly implementation reports

Governing/Oversight Bodies

The government has also emphasized the importance of oversight bodies in ensuring effective implementation of risk management practices. Where applicable, governing bodies are expected to play a critical role in monitoring and reviewing the performance of PSEs in implementing risk management frameworks.

Conclusion

Public sector officials have been tasked with ensuring the safety and efficient use of public resources through effective risk management practices. The government has recognized the importance of risk management as an integral part of sound public sector governance, and has given IAG the responsibility to assure its effectiveness in PSEs.