Parliament Audit Committee proposes immediate development of risk management based on the National Audit Office’s annual report

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On the basis of the NAOF’s annual report, the Parliament Audit Committee highlighted the need to improve risk management of central government without delay.

In its report, the Committee states that the Government must take immediate action to improve risk management of the state and determine, by the end of 2020, appropriate and compatible procedures for the Government, administrative sector and agency levels, as well as name ministries in charge of the actions and determine the division of responsibility.

According to the NAOF, the arrangement of risk and continuity management in central government emphasises the liability of single agencies, even though the procedures and problems in society and central government have become more complex and multidisciplinary. The means available to a single agency and the narrow situational awareness from the perspective of a single agency are not sufficient to respond to the more complex risks in the changing operating environment.

According to the NAOF, one of the future threats and a risk that has already been partially realised is that there are more regulations, the regulations have become more complex and the time allotted for preparation has become shorter when compared to the available resources. This may result to poor legislation that is also completed too late. According to the NAOF, there is no risk management that covers central government in its entirety and no party responsible for the operations has been named.

In its report, the Parliament Audit Committee states that the progress in this matter must be towards comprehensive risk management at the level of the entire state. The responsibility for securing the operations of society under normal conditions must lie with one party at the ministry level.

According to the Committee, more extensive cooperation in central government is also required to detect and manage cross-administrative risks. The Committee requires for the Government to determine compatible and functional procedures for risk management at the Government, administrative sector and agency levels, as well as name parties in charge of the actions and determine the division of responsibility. 

 

Annual report of the NAOF 2018

Performance audit report: Risk management and continuity of operations in central government

Report of the Parliament Audit Committee (TrVM 10/2018 vp — K 19/2018 vp)