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Government Roles in Risk Management for Public Sector Construction — Experiences in Leading Countries 政府在公共建設風險管理中之必要角色 -先進國家經驗的學習. 周慧瑜. 25 Apr. 2007. Why Risk Management in Government is Important?. Why Risk Management in Government is Important?.

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government roles in risk management for public sector construction experiences in leading countries

Government Roles in Risk Management for Public Sector Construction— Experiences in Leading Countries政府在公共建設風險管理中之必要角色-先進國家經驗的學習

周慧瑜

25 Apr. 2007

why risk management in government is important1
Why Risk Management in Government is Important?

Improving public services through better construction

&

Improving construction performance through better risk management

why risk management in government is important2
Why Risk Management in Government is Important?
  • the focus of risk management?
  • the bodies responsible for managing risks?
  • Tick box- the culture of risk management?
why risk management in government is important3
Why Risk Management in Government is Important?
  • Help departments improve their public service delivery in a number of ways:
    • Better service delivery
    • More efficient use of resources
    • Better project management
    • Minimum waste and fraud
    • More value for money
    • Innovation
what has been done in taiwan1
What Has been Done in Taiwan?
  • 8th Aug., 2005- “Risk Management Implementation Project in the Administrative Agencies (行政機關風險管理推動方案)”
    • Timetable:

End of 2005- identified 3-5 main risks, and built risk management framework for one of the risks.

End of 2006- Risk profiles

End of 2007- Integrated risk management framework.

what has been done in taiwan2
What Has been Done in Taiwan?
  • From 2nd half-year of 2005- RDEC (Research, Development, and Evaluation Commission, Executive Yean; 行政院研考會):
    • Consultant and advisor
    • Seminar or training programs
    • Risk management guide
    • Risk management Knowledge Network (風險管理知識網)
    • Inquiry hotline
what has been done in taiwan3
RDEC & ITRI: Risk Management Technical Note (風險管理作業手冊)

2005/10 →Version 1

2006/11 →Version 2

行政機關風險管理研討會 (2005/5)

95年度行政機關風險管理研習班

專業研習班 (2005/11 & 2006/7)

進階研習班 (2006/7)

主管研習班 (2006/9)

95年行政機關風險管理標竿學習觀摩會 (2006/11)

What Has been Done in Taiwan?
what has been done in leading countries
What Has been Done in Leading Countries?
  • National Standards
    • 1995 Australia & New Zealand: now AS/NZS 4360:1999
    • 1997 Canada: CAN/CSA-Q850:1997
    • 2000 UK: BS-6079-3:2000

PD6668:2000

    • 2001 Japan: JIS Q 2001:2001
  • Risk Management Standards Define:
    • Risk management process
    • Activities underpin the process
    • Guidance on tools and techniques
the risk management framework in uk government
The Risk Management Framework in UK Government

CORPORATE DECISION-MAKING GROUPS

DEPARTMENTS

CENTRAL SUPPORT

Other Information

Customer: Ministers & Senior Officials

Policy & Plan

Domestic Horizon Scanning Committee

Civil Contingencies Secretariat (CCS)

Horizon Scanning

Intelligence and Assessments

Assessments

Assessing Risks

Strategy Unit

Joint Intelligence Committee

Assessments

Joint Assessment Staff

CCS helps with contingency planning and crisis

Reviewing & Reporting Risks

Handling Risks

Need for Resilience building

Intelligence and assessments

Draft Plans & Progress Information

PSX

Treasury Spending Teams & Delivery Unit

Plans

Evaluation of Current Practice

Improved Capabilities

Agreed/Adjusted Plans & Resources

Departmental Risk Support

Risk Improvement Program

Progress Information

Civil Service Management Board

Risk Support Team

(Treasury)

Developing Risk Management Capabilities

Guidance & Training, etc

public assessments of the government s handling of certain risks
Public Assessments of the Government’s Handling of Certain Risks

Q: Which of these issues, if any, do you think have been handled successfully/ unsuccessfully by the government?

public trusts in information sources on bse
Public Trusts in Information Sources on BSE
  • Q: How thinking about BSE, which two or three, if any, of these sources would you trust most/ least to advise you on the risks posed by BSE?
how can uk government make progress in risk management for public sector construction

How can UK government Make Progress inRisk ManagementforPublic Sector Construction?

how can uk government make progress
How can UK governmentMake Progress?
  • Institutionalizing risk assessment
  • Standardization of project review process
  • Revolution of procurement system
institutionalizing risk assessment
Institutionalizing Risk Assessment
  • 2002 Green Book
    • advice on appraisal and evaluation process for Central Government
    • to promote efficient policy development and resource allocation across government
  • Six stages to ensure the assessments consistent and transparent
    • Rationale
    • Objectives
    • Appraisal
    • Monitoring
    • Evaluation
    • Feedback
  • Cost benefit analysis is used here to choose the best (the highest NPV) option of proposals, and the NPV should be adjusted by considering risks in each option.
standardization of project review process
Standardization of Project Review Process
  • Assessing Risks Through OGC Gateway Reviews
  • Red Amber Green (RAG) ratings

(Red) the project team has to take action immediately

(Amber) the project can go forward and provided recommendations have to be responded to before the next review

(Green) the project is on target except for minor matters

revolution of procurement system
Revolution of Procurement System
  • PPP/PFI/Privatisation
    • Organisational options to put risk where it can best be managed
  • Developing project management skills to ensure that government Departments have the capacity to become better purchasers and providers of public services
lessons from leading countries experience
Lessons fromLeading Countries’ Experience

Risk management framework first

Involvement and participation of senior management

Tailor-made for individual departments

Full-scale mobilization

Clear responsibility

Training courses

Learning by doing

Technical notes and case studies

Continuous improvement

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