Risk management

This chapter provides a commentary on the principle of risk management contained within the OECD Recommendation of the Council on Public Integrity. From both the government-wide and institutional perspectives, the chapter explores how public sector organisations can tailor policies and practices to effectively manage integrity risks, conduct risk assessments and sustain a control environment that safeguards public integrity. It also emphasises the need for coherent procedures to respond to potential fraud or corruption, including protocols for reporting, follow-up and investigations. The chapter also considers the critical role of internal audit functions in relation to managers in government, focusing on their added value of providing independent, objective assurance for effective internal control and integrity risk management. The chapter highlights key challenges and leading practices, such as articulating value-driven internal control policies, conducting periodic risk assessments that link to objectives, and creating feedback loops to monitor and evaluate activities.