Enterprise Risk Management: A Guide for Government Professionals

Chapter TwoExamples of Risk Management in the Federal Government

Despite a lack of fundamental definitions, the discipline of risk management is not a new concept in the U.S. federal sector. It has been used in private and public sectors for decades. It is a well-established practice dating back to the late eighteenth century, when the government began to develop policies to deal with risks thought to undermine trade and investment.¹ “Government has always been involved in managing risks, even as risk management has not generally been recognized as being a fundamental function of government,” says David Moss, a professor of business administration at the Harvard Business School. As government agencies face increased scrutiny regarding accountability, ...