Conference: Internal Governance and Control in Public Operations
The conference will be held on March 26-27. Internal Governance and Control in Public Operations in Stockholm. Ekan Management's Knut Fahlén participates and shares his insights about the future of governance. How does budget work need to develop in an uncertain and changing world?
Looking back when everything is equal
Internal governance and control have historically focused more than half of their time on legal issues, financial management and compliance. Adhering to laws and regulations is obviously important, but when it comes to planning, managing and controlling operations, retrospective variance analysis against a decided budget is still used, even though many recognize that the method has lost its relevance.
Looking ahead as the world changes
The reason for this is obvious: Things are changing at a breakneck pace. As an example of this, the approaching Stanford and IMF's "World Uncertainty Index" levels that were during the Covid pandemic in 2020. Instead of following deviations from an outdated plan, more and more are striving to adapt to the variation that exists in the business and its environment. Among other things, to get early warning signals and manage both strategic and operational risks when they arise. Combined with other methods, decision-making is also distributed to autonomous, cross-functional teams.
One study in the Harvard Business Review showed already 10 years ago that 95 percent of all value losses in organizations came from inadequate management of strategic and operational risks – not from financial or legal shortcomings.
Proactive risk management
Introducing new ways of managing risks can be perceived as risky in itself. At the same time, it can be necessary to become more efficient in your management of internal governance and control. If you want to know more, we recommend that you visit the conference "Internal governance and control in public sector" on March 27. Knut Fahlén, senior management consultant at Ekan Management, will be participating to talk about how budget work can develop for public sector in a changing and uncertain environment.
Read more about how Ekan Management works with dynamic governance in a changing world.