A public sector approach to risk management as part of a total asset management strategy

There is a clear willingness on the part of public sector clients to strive for best practice in the management of their assets. This is evidenced through initiatives such as those undertaken by the Department of Public Works and Services (DPWS) New South Wales, in its total asset management strategy. A recent research project undertaken by the Department of Building at the University of Newcastle in co-operation with DPWS reviewed and evaluated risk management practices in public sector projects with respect to stated policy, current total asset management strategy and best practice benchmarks. The study had two objectives firstly to compare the DPWS risk management guidelines against other industry and theoretical risk management models and, secondly, to obtain feedback on current risk management practices within the DPWS , with particular reference to the application of the risk management processes contained in the Total Asset Management Manual (TAMM). The study of risk management models demonstrated that the DPWS model had comparable features to private sector models. The review of DPWS risk management processes raised a numbers issues related to the inclusion of key stakeholders in the decision making process in complex public sector projects.