Federal CFO Insights: What’s Risk Got to Do With it?
Financial planning and analysis (FP&A)
Over the past decade, risk management has been an integral part of public and private sector organization planning, budgeting and the overall strategic management process. Risk management functions have been included in organizational structures for decades; however, this subject area has become more visible — mainly due to the recent collapse of major financial institutions and the increased regulatory environments in hopes of mitigating future events that could erode public trust and well-being. Risk management is not limited to Federal agencies. As decreased tax revenue and cost cutting are more prevalent, state and local municipalities are looking to better leverage risk management techniques. Also, the increasing level of public scrutiny on government spending, program outcomes and employee actions is creating greater risk to agency reputation and management credibility. Such events could significantly affect legislative decisions regarding funding as well as the pressures of investigations and increased oversight.
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