Embedding Risk Management in a Public-Sector Organisation Through a Facilitation Approach: An Exploratory Study

Authors: Rosemary Ryan (DBA Student at WIT), Dr. Richard Burke (WIT) and Dr. Tom Egan (WIT). Evidence of the practice of managing risk has been a key requirement for public bodies in Ireland since their establishment. The... [ view full abstract ]

Authors: Rosemary Ryan (DBA Student at WIT), Dr. Richard Burke (WIT) and Dr. Tom Egan (WIT).

Evidence of the practice of managing risk has been a key requirement for public bodies in Ireland since their establishment. The emphasis has historically been on the management of financial risk by combating fraud and misappropriation of public monies.  The focus of this paper is on one public body within the education sector, specifically an Irish Education and Training Board (ETB), and such compliance requirements have presented significant challenges for public bodies as they do not have the required expertise within the organisation and they do not have the resources to embed risk management into the day to day business activities.

The author of this research paper is an insurance company's Head of Client Enterprise Risk Management Services who has many years’ experience advising ETBs on how to comply with risk management requirements.  In recent years, she has questioned the value of her role as an External Facilitator in supporting ETBs to demonstrate the embedding of risk management, as well as observing that some ETBs demonstrate a high level of compliance while others do not, and wonders if it is attributable to the role of the facilitator, or are there other factors at play that have not yet been identified.  The researcher has noted work undertaken by Wardale (2013) which identified a deficit in the evidence of how effective the transfer of projects is from Project Manager to Project Sponsor.  She has also noted that the challenge of embedding risk management is in many ways like trying to implement a change management initiative as it requires careful planning in advance to improve the chance of ultimate success (Lewin 1947 and Kotter 1995). The aim of this research is to explore how a facilitation approach can support the embedding of risk management in a public-sector organisation.  To this end, a conceptual framework (Table One) has been developed (attached).

In short, this framework considers risk management models, facilitation models and change management models in the context of trying to successfully embed risk management in a public body which lacks expertise and resources at the outset such as an Internal Facilitator.  Successful embedding of risk management will require the External Facilitator (the researcher) to successfully transfer to the Internal Facilitator (Schwartz, 2017) who will ensure that risk management is embedded into the long term. 

In summary, this study is guided by the conceptual framework and aims to achieve the following research objectives:

1. To develop a deeper appreciation of the role of facilitation in supporting public bodies to embed risk management.
2. To explore the development and management of an external facilitation approach to support the embedding of risk management in a public-sector organisation.
3. To identify key success factors supporting and impeding the embedding of risk management in a public-sector organisation.
4. To evaluate the embedding of risk management in a public sector organisation through a facilitation approach.

Design Methodology / Approach

The methodological approach for this paper has been guided by the Research Onion (Saunders et al, 2007, p. 132) (Figure One attached) as it is generally applicable in a variety of contexts (Bryman, 2011).

Choices made for this study include:

• An interpretivist paradigm is selected as this develops an understanding of social phenomena within a specific context, and believes that ‘social reality is affected by the act of investigating it’ (Collis and Hussey, 2014, p. 343).  In the context of this research, the social phenomena will be the role of the External Facilitator in supporting the embedding of risk management in an ETB (Hussey and Hussey, 1997).
• An exploratory case study (with elements of a descriptive case study) has been chosen to help elicit answers as to why certain behaviours produce positive outcomes versus negative outcomes, and how beneficial the role of a facilitator can be. 
• The target organisation for this study was selected via a ‘purposive sampling method where the chosen ETB was identified on the strength of their experience of the phenomenon which is being studied’ (Collis and Hussey, 2014, p. 132).

Findings

At the outset of this research study and having discussed my existing approach to external facilitation with colleagues, it was felt that it would be beneficial to gather additional information on optimal facilitation approaches so as to acquire a deeper appreciation of the role of External Facilitator. To this end and to achieve the first research objective, two expert interviewees who were known to me for approximately fifteen years from professional meetings and conferences were identified and were considered credible within their profession and knowledgeable to inform on this objective. These interviews were conducted in the summer of 2017 and a summary of the main findings is as follows:

• A critical resource for facilitation is a good Internal Facilitator – this reaffirmed the author’s own experiences working with public bodies in her career to date.
• Strong leadership can act as a key enabler to the successful embedding of risk management but weak leadership is a clear inhibitor.  Such leadership was linked to effective communication to staff, ‘walking the walk and talking the talk’ (Expert Interviewee 1). Both interviewees agreed that the Internal Facilitator needs to be capable of assuming a leadership role for risk to be successfully embedded.  Expert Interviewee 2 added to this by observing that while ‘leadership is aligned with the role of the Facilitator, not all Facilitators or risk managers are risk leaders’ which suggests that the chances of successfully embedding risk are greatly reduced if the chosen Facilitator does not have good leadership skills.

 After concluding the expert interviews, the author began the process of seeking to embed risk management in the chosen ETB organisation. This process which is expected to be completed by April 2018 has consisted of the following to date:

• Prior to this research study, the author had supported the updating and review of the corporate risk register from 2013 to 2017.  It was evident from these interactions that there is an appetite by the Senior Management Team (SMT) to embed risk management, but that due to the reduction in resources (time, money, human) and competing priorities that the risk management architecture has not been updated to remain relevant.
• In June 2017, the SMT established a Governance SMT with the objective of supporting embedding of risk management and to demonstrate mitigation of risks that could threaten the delivery of its Statement of Strategy 2017-2021.  The author was invited by the Chief Executive to operate both as an External Facilitator and as a DBA researcher in the coming months, and to attend the monthly Governance SMT meetings in an observational role.
• Interviews were conducted with the SMT as well as facilitating a focus group with Senior Administrative Managers (SAM) late in 2017 to establish a baseline for embeddedness of risk management while focusing on the function of facilitation.  It is envisaged that the management of risk will ultimately be transferred to the Internal Facilitator when one reaches stage five of Wardale’s (2008) facilitation model.

• Ongoing facilitation with the chosen ETB initially to provide induction and support to a newly appointed Internal Facilitator, and to provide assistance to the SMT and SAMs.  

• Full findings on the success of this facilitation approach are expected in April 2018 but all experiences to date suggest that the combination of an External Facilitator working closely with a competent Internal Facilitator and with the support of the SMT is having a positive impact on risk management practices at this ETB.

Research Limitations / Implications

The research limitations were time and availability of resources at the research site.  The ETB employs in excess of 3,000 staff and operates across multiple sites providing services to more than 40,000 learners.  Such challenges present difficulties in communicating a standardised system within a short period of time (8 months).  This was balanced by the openness and willingness of the SMT at the research site to embrace the concept of managing risk and embedding the practice across the ETB.  The implications of the research are the identification of further deficits and risks that are not funded and which will not be funded by government in the near future.  This is married with concerns expressed by SMT members that if serious harm/damage arose in the future following the identification of significant risk that the Chief Executive and/or others would carry the liability rather than the relevant government department.

Practical and Social Implications and Originality / Value

Given the importance of risk management in public organisations and the real challenges faced in embedding risk management, this study will have important implications. It will shed light on the importance of facilitation as a tool to assist public and private sector organisations who lack the in-house expertise to do this and will highlight the key factors which allow a facilitation process to succeed or not.