Strategic Risk Management in Government: A Look at Homeland Security
This report includes two papers describing how the federal government can increase its capability to undertake strategic risk management in safeguarding the nation. In recent years, the government has devoted increased attention to the use of strategic risk management. The challenge now facing government is to begin to link strategic risk management to resource allocation.
David H. Schanzer and Joe Eyerman describe the recent history of strategic risk management in the department and set forth a series of findings and recommendations directed to the Executive Office of the President, the Department of Homeland Security, and Congress. A key recommendation is that the department enhance the analytical capability necessary for strategic risk management.
Veronique de Rugy presents a case example of how government can link strategic risk management to resource allocation. Dr. de Rugy uses port security as an example of how strategic risk management can be used to analyze threats to the nation, develop scenarios, pose key questions, and develop resource allocation options. To illustrate the potential of strategic risk management, she presents three resource allocation options as to how the federal government might reallocate its present resources to more cost-effectively respond to security threats to the nation based on risk analysis.