Magazine article Public Finance

Survey Shows Attitudes to Risks

Magazine article Public Finance

Survey Shows Attitudes to Risks

Article excerpt

Earlier this year, PF joined forces with insurance broker Arthur J Gallagher to ask our readers about risk financing in the public sector. We wanted to know about the strategies that organisations are deploying to ensure they remain resilient in the face of a rapidly changing public sector landscape, which is bringing with it fresh risks and threats.

Almost 200 of you completed our survey and the results have provided some fascinating insights. When asked to rank public sector risks in order of threat to an organisation, the largest proportion of respondents (45%) chose budget deficit as the main threat. Cyber/data loss was a strong second, nominated as the biggest threat by 34% of those answering and second biggest by 28%.

Change of political leadership, terrorism, flooding and public disorder were seen as significant but lower public sector risks.

Tim Devine, managing director of Arthur J Gallagher's public sector and education practice, says: "The highest risk was budget deficit, which we expected.

"However, cyber/data loss scored very highly and resulted in an adjusted score of 5.64 compared to budget deficit at 5.69. Similarly, cyber/data loss was ranked as the number 1 or 2 risk by 109 respondents compared to 119 for budget deficit. Th ese two risks stood out as primary concerns."

Elsewhere, the survey revealed that almost three quarters of respondents (73%) had not considered alternatives to traditional insurance, while almost two thirds (65%) had not considered a shared service for their insurance function, although this could bring substantial savings in the form of premium discounts, lower claims and legal fees, and improved claims management. …

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