Risk reporting for risk managers in US local government
Lucy Hilton 
Date published: Jun 22, 23
Risk management has become an essential aspect of governance in the United States, especially at the local government level. It involves identifying, analyzing, and mitigating potential risks that can impact an organization’s objectives. For effective risk reports, these insights are taken and presented in a comprehensive and useful manner and support the governing bodies in their operations. They are essentially one of the building blocks for effective decision-making, transparency, and overall resilience.
Key risk management principles
There are several fundamental principles that underpin effective risk management. These principles are the foundation for insightful risk reporting.
- Proactive approach: Identifying and addressing risks before they materialize, rather than reacting to them after they occur.
- Systemic process: Implementing a structured and consistent method for identifying, assessing, and managing risks.
- Accountability: Assigning responsibility for risk management activities to specific individuals or teams.
- Informed decision-making: Using accurate and up-to-date information to make decisions about risk management strategies.
- Continuous improvement: Regularly reviewing and updating risk management processes to ensure they remain effective.
Factors affecting local governments
Local government has pressure thrown at them from a multitude of angles. In most recent years we have seen how essential it is to remain resilient and agile in the face of a rapidly changing risk environment. Here are some of the top areas affecting local governments today:
- Financial constraints such as limited budgets and funding sources can hinder the ability to address potential risks adequately.
- Local governments must adhere to various federal, state, and local regulations. This regulatory compliance increases the complexity of risk management.
- Aging infrastructure and limited resources for maintenance can pose significant risks to public safety and service delivery.
- Changes in political leadership and priorities can impact risk management strategies and resources.
- Local governments need to plan for and mitigate risks posed by changes in environmental, social, and governance (ESG) factors.
Practical recommendations for risk managers
To stay informed and accurately report on potential risks, risk professionals should:
- Stay up-to-date on relevant regulations and best practices, attending workshops and conferences to expand on knowledge.
- Foster a risk-aware culture within the organisation, encouraging open communication about potential risks and challenges.
- Leverage software solutions to automate and streamline risk management processes, making it easier to identify, assess, and mitigate risks effectively.
- Regularly review and update risk management strategies, ensuring they remain responsive to changing circumstances and evolving threats.
How the City of Orlando effectively manages their reporting on risk management
The City of Orlando operates a ‘strong mayor’ form of government and provides municipal services to over 235,823 citizens. The government manages over 1,150 performance measures on Ideagen Risk Management across multiple departments and has over 100 users.
Each department uses the software for its own particular purpose. The legal department uses the action central to track key milestones; The economic development department uses the scorecards to monitor achievement of the operational goals; The transportation department uses the snapshots to track progress on both actions and PIs. Within the departments’ broad uses of the software, each user has a folder in the reports central where they can access personalized reports for their area of responsibility.
The ease and accuracy of the reports allows for all departments to provide transparency, assurance, and a 360-degree view of their risk environments.
