A report out today reveals that local authorities feel they lack the expertise needed to manage the risk implications of the major change programmes required by current budget cuts.
According to a new survey by Zurich Municipal, senior managers within local authorities most fear the potential failure to maintain service delivery (23%); loss of good staff (21%) and a drop in morale (21%).
Despite acknowledging the significant organisational, financial and reputational implications of the budget cuts, three quarters of local authorities (74%) still do not feel they have the relevant expertise required to successfully manage the fall-out.
The research coincides with the launch of a new report from Zurich Municipal, Building Resilience , which warns that local authorities are failing to keep pace with the changing nature of risk within the new era of 'more for less' government – an era that is creating many and varied risks, from those related to downsizing or increased outsourcing, to data protection risks.
The changing risk landscape associated with climate change and the threat of reputational damage, heightened by the modern media environment, only adds to the challenge.
Andrew Jepp, head of local government at Zurich Municipal, said: "The new responsibilities and pressures now faced by local authorities have combined to create an unprecedented level of risk that many rightly fear, but few are prepared for.
"Having suffered first hand the consequences of widespread risk complacency, private sector organisations are now developing best practice risk management that could – and should – be appropriated by local authorities."
From Whitehall Watch
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