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Top risks facing public sector organisations are financial challenges and an inability to meet changing demands and expectations of the public for services, a global survey of financial professionals by ACCA has revealed.
The research, which drew on responses from people working in finance, risk, audit and service delivery within the public sector, found that they were worried about funding and the ability to meet evolving demands within their own companies.
Another thing they were reportedly worried about was finding the people with the right talent and skills.
ACCA’s survey also highlighted which risks were the most significant, with the top five being financial challenges (49%); meeting changing demands and expectations for services (35%); talent and skills deficit (35%); poor organisational culture (28%); and ineffective leadership (26%).
In response to the challenges facing the public sector, ACCA’s new guide ‘Calculated Risk’ makes the case for finance professionals taking a leading role in the risk management process.
Despite the skills finance professionals possess, the survey showed that many public sector organisations are not making effective use of their capabilities in risk management. Just over half of respondents (55%) who work in the finance function said they were regularly involved in identifying and reviewing relevant operational risks.
Mark Johnson, senior subject manager for the public sector at ACCA, said: “Some public sector organisations are neglecting the valuable insight of staff working on the frontline. Identifying risk is a two-way process: organisations need to be made aware of any risks that are not already formally identified and those working in services are often in the best place to identify such risks.
“Using the knowledge and expertise of staff working in each part of an organisation to build up a profile of risk is critical for a comprehensive understanding of risk.”
