NASCA Releases New Report: Risk Management is More Important Than Ever Before

Tuesday, November 12, 2019
Risk management is more important than ever before,
According to new study by NASCA and McKinsey & Company
 

LEXINGTON, Ky, — Risk management is more important than ever before, as fast-moving technologies and external forces create new and more powerful threats for state governments according to new research by the National Association of State Chief Administrators (NASCA), an association dedicated to the governor’s top operational leaders, and McKinsey & Company.

“Most states have not defined the full taxonomy of potential risks or adequately prioritized those areas where state governments have the highest exposure and face the greatest potential impact,” said Joseph “Jay” Truesdale, Associate Partner at McKinsey & Company." No single state or city across the country has done risk management uniformly well. This report encourages state leaders to adopt best practices and lessons-learned from both public and private sectors.”

Based on a limited set of questions by design, this paper provides an overview of how state governments approach risk management. Some findings include:

  • Only half of the states surveyed have a regularly evaluated enterprise risk management strategy.
  • Many governments lack necessary awareness and centralized oversight of all risks faced by the state.
  • States may have different risk appetites, leading to varying levels of financial, environmental, or other regulations.
  • Among the states, there is wide variation in risk management processes, including how states delegate risk ownership and manage risk evaluation.

CAOs are responsible for critical risk management topics including cybersecurity, financial security, and facility security.


Download the full report on www.NASCA.org/Research

About the Reports

To provide a robust set of data and insights states can use to compare state practices and inform forward looking strategic decisions, the National Association of State Chief Administrators (NASCA) and McKinsey & Company partnered for a second year to produce the Business of Running State Government Operations survey on key issues affecting CAOs today. The survey results are published in three separate papers that focus on real estate, digital government, and risk.

 
About NASCA

The National Association of State Chief Administrators (NASCA) is the leading organization advancing professional development and best management solutions for the administrative functions of state government. The association provides state chief administrators with the opportunity to increase their knowledge of state government administration through education, networking and information exchange on state government trends, leading edge innovations, standards and best practices.

NASCA’s mission is to help state chief administrators and their teams strategically transform state government operations through the power of shared knowledge and thought leadership.
 

About McKinsey & Company

McKinsey & Company is the world’s leading strategic management consulting firm, deeply committed to helping institutions in the public, private, and social sectors achieve lasting success. For almost a century, McKinsey has served as the most trusted external adviser to governments and private sector companies in the United States and across the globe, helping them solve their most pressing problems, and enabling them to achieve distinctive, substantial, and lasting improvements in their performance. McKinsey’s governance as a private worldwide partnership ensures its independence and objectivity 

Contact 

Jamie Rodgers
Deputy Director
National Association of State Chief Administrators
(859) 402-9811
[email protected]
www.NASCA.org

 

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