Traditional Enterprise Risk Management (ERM) was first introduced and actively practiced in private sector. Recently more and more public sector organizations have been engaging in organization-wide risk management, widely using the term ‘ERM’ for it
The good thing is that public organizations are increasingly mindful about addressing risks. However, only ERM is absolutely insufficient. The critical difference here is the focus of attention. If the focus for the ERM is mainly set on addressing the objectives of the organization itself or its constituencies (one or multiple organizations), for public sector organizations – the focus is primarily set on the priorities of its beneficiaries and not the organization itself.