Governance and risk management: challenges and public productivity

This paper has two purposes. The first is to help elected officials address the issue of public accountability for crises and improve productivity and risk management in the process by outsourcing some traditional government functions to civil society based organizations that can do a better job. The second is to mobilize researchers to explore the implications of the shift from “governing” to “governance” for risk management and the development of risk culture.

After exploring some case studies, the paper examines some leading resources on the shift from “governing” to “governance”. The paper goes on to present an alternative approach for managing public risks.

In order to improve the management of public risks, and given the financial constraints faced by most governments, there is a need for a deliberate effort to entice civil society based organizations to help government identify and alert the public to possible risks. In other words, civil society based organizations that make claims for public resources in the name of good governance should, as necessary, play the role of a watchdog when it comes to public safety and guarding of the public interest in that regard.

Use of market forces and non‐governmental entities to replace government agencies and regulations that cannot assure the public safety because they are difficult to implement, expensive or likely to be compromised due to various forms of corruption and politics.

The paper advocates substitution of “management by exception” by a “management by risk” approach and the fostering of an administrative culture that is more mindful of the need to recognize and address possible risks. Such an approach, the paper claims, is a more promising approach than an increase in government regulation.