The Association of Chartered Certified Accountants urges finance professionals to spearhead risk management in the public sector.
A recent ACCA survey pinpointed financial challenges and the inability to meet evolving public demands as top risks for public sector organizations.
The survey highlighted that finance professionals and other public sector workers play a crucial role in a global economy grappling with substantial risks, often lacking the necessary tools.
Concerns were expressed about funding, adapting to changing service demands, and attracting skilled talent.
The research, involving individuals in finance, risk, audit, and service delivery roles across the public sector, identified the top risks as follows: financial challenges (49%), meeting changing service expectations (35%), talent deficit (35%), poor organizational culture (28%), and ineffective leadership (26%).
In response, ACCA’s new guide, “Calculated Risk,” advocates for finance professionals to take a leading role in the risk management process.
Despite possessing relevant skills, the survey revealed that many public sector organizations underutilize finance professionals in risk management, with only 55% regularly involved in identifying and reviewing operational risks.
ACCA’s Senior Subject Manager for the Public Sector, Mark Johnson, emphasized the importance of leveraging frontline staff insight, stating that a collaborative approach to identifying risks is critical for a comprehensive understanding.
Johnson highlighted the need for a departure from business as usual in the face of challenging public finances and stressed the finance function’s pivotal role in recognizing and addressing risks across the organization.
The survey concludes that building organizational resilience involves developing skills and capabilities.
Johnson asserts that public sector finance professionals, well-versed in risk threats and opportunities, play a crucial role in fostering more resilient public services.
