Wednesday, January 19, 2011

Risk Management Urgency for Inspectorate General of Ministry of Finance

Risk Management Urgency
for Inspectorate General of Ministry of Finance *)

Risk management has become an important factor for every organization, both private and public. Risk management involves the process of assessing risk and then developing strategy to manage possible risks. Doing identifications the sources of risk, performing a measurement over risks, and then planning on how to take care of it are the complete steps of a risk management process.

The implementation of risk management for a public sector has become something that's been very popular for quite a while. The requests for public sectors to become more transparent, the need to increase performance with every possible resource limitation has turned risk management into a great necessity. It is believed that, even if risk management isn't an absolute factor to achieve success in an organization, risk management has become an important point we should pay attention to if we want to lessen damages produced by risks.

It should also be noticed that significant and critical risks that can't be handled will have a negative impact on the accomplishment of each unit's goal. Failure of a completion of a goal in a unit will have direct influence on the organization's objective, resulting in a failure in the main goal. This could spark off distrust from the public to the organization as a whole. Surely, this should be avoided!

Remembering on how big a negative impact from a risk that could be faced by an organization, risk management has become an essential that can't be left without. Its implementation is a must for any public organization who wishes to achieve awareness of or compliance with regulatory requirement, increase good governance, decrease financial losses and take full advantage of resources allocations. For it is by having a good understanding of a risk, an organization can effectively face uncertainty in goal achievement. 

For Inspectorate General (ITJEN) who has a role as a Compliance Officer for Risk Management (CORM) in the surroundings of Ministry of Finance, risk management has become an absolutely fundamental factor to be understood and implemented seriously. By having a good comprehension of risk management, ITJEN is expected to be able to execute its role as a CORM, and additionally, ITJEN of Ministry of Finance is also expected to become a benchmark of other Departments' Inspectorate Generals in implementing public sector risk management.

*) Ditulis sebagai syarat untuk mengikuti training.

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