Originally posted on 17 Dec 2013

More than a third of public sector organisations fear they do not have effective mechanisms in place to manage risk, which could leave them vulnerable to major financial and operational failures, research has revealed in an article in Public Finance on 16 December, here.

A poll of 93 heads of internal audit in both Whitehall and local government found that 42% in central government and 37% in councils rated their organisation’s awareness of risk as ‘in the early stages’, ‘in development’ or even ‘non-existent’.

The Chartered Institute of Internal Auditors, which undertook the survey, warned this lack of expertise could lead to service problems in a large proportion of the public sector. The report highlighted that effective internal audit could help tackle poor management, such as occurred at Mid Staffordshire NHS trust, and improve poor governance, which led to the botched West Coast mainline franchise award.

The institute stated it had worked with CIPFA and other internal audit standard setters in the public sector to launch the first internal audit standards to apply across the whole of the public sector earlier this year.

All of this may be small fry compared to the risk from poor cybersecurity measures which I wrote about on 16 December 2013: It’s time for professional firms to step up and tackle “the cybersecurity problem”, view here.

Martin Pollins

Managing Director at One Smart Place
Martin Pollins is a Chartered Accountant and MBA with wide experience in corporate finance and business management. He has served on the boards of several companies, including those listed on the London Stock Exchange, AIM and OFEX. He is Chairman and Founder of OneSmartPlace and was a Council member of the Institute of Chartered Accountants in England and Wales from 1988 to 1996. He was managing partner of PRB Martin Pollins, based in Sussex, the first Accountancy firm to advertise on British television.He went on to create and launch the CharterGroup Partnership (the UK’s first Accountancy network) and then LawGroup UK (at the time, one of the largest networks of lawyers in the UK). In recent years, he helped to raise several £millions to fund British films such as The Da Vinci Code, Bridge of San Luis Rey, Head in the Clouds and Merchant of Venice with actors such as Charlize Theron, Robert De Niro, Al Pacino, F. Murray Abraham. Kathy Bates, Gabriel Byrne, Geraldine Chaplin, Tom Hanks, Ian McKellen, Audrey Tautou, Penélope Cruz, Steven Berkoff, Lynn Collins, Jeremy Irons, Joseph Fiennes and many more.

He has written over 700 business publications (see Glossaries at http://onesmartplace.com/resources/glossaries/) and is editor of Better Business Focus (see http://onesmartplace.com/resources/better-business-focus-magazine). His Blog, on a wide range of subjects can be found at: http://onesmartplace.com/blog/
Martin Pollins

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