Risk management is evolving into a broader, more general, management role in organisations. This emerging form, called organisation risk management (ORM), seeks to manage all organisation risks in an integrated, comprehensive and strategic manner. The public sector has been somewhat slow to adopt both this view and practice, but changing political, social and economic pressures are forcing public authorities to provide better services with increasingly limited resources; and these pressures, in turn, are heightening the awareness of the value in managing the cost of risk. This paper introduces and develops the ORM concept, and provides a specific application that is a critical issue for the modern police authority — employment risk. In discussing this employment risk, the paper offers both a method for analysing risks generally and a set of risk management principles that apply to the actual management of all organisational risks.
Employment risk, compensation incentives, and managerial risk taking: Evidence from the mutual fund industry