Overcoming Challenges to New Zealand Public Sector Risk Management

Abstract

Risk management in New Zealand’s public sector is challenging. The development of proactive, well-informed strategies that bear
on risks affecting public policy has obstacles to overcome. The challenges include complexity, uncertainty, heuristic biases, policy debates over the role of government, and how the polity should determine and articulate risk appetites and tolerances. Overcoming
these challenges is important. Effective risk management enhances policy resilience and adaptability during crises, whereas poor
practices result in inadequate outcomes and missed opportunities for improvement. This article emphasises the need for probabilistic
analysis, institutional checks, anticipatory governance and continuous improvement to overcome these challenges. It warns of common traps public servants often fall into.