OGC issues guide to managing risk

The Office of Government Commerce (OGC) has warned that improved risk management is needed in public sector procurement to ensure that government projects are delivered on time and to budget.

To help, the OGC has issued a CD-ROM, entitled Management of Risk: Guidance for Practitioners. It sets out a framework for taking informed decisions about risk at a strategic, programme, project and operational level.

The guidance concentrates on five key areas:

* The requirements of corporate governance.

* The need for a 'risk owner' at senior level, who should be supported by risk owners at less senior levels.

* The need for improved reporting and upward referral of major problems and potential resolutions.

*The need for shared understanding of risk management at all levels.

* Managing of project risk in the wider context of programme and business change.

Last month the Design Build Foundation revealed that £250m is wasted every year in the risk management process because of failure to share information.