| CREATING A FRAMEWORK
With an understanding of key terms and risk management concepts, the next step was to
develop a basis for exploring issues of interest to government policy-makers -- a
context in which to discuss, examine, and seek out inter-relationships between issues
associated with making public policy decisions in an environment of uncertainty and risk,
i.e. a framework of public risk management.
- The first step to creating such a framework was the identification of common elements;
issues with relevance to a variety of perspectives in government.
- The next step was the presentation of such elements in a manner that would stimulate
discussion, facilitate comparisons and, where feasible, provide for the development of
consistency in approach to public risk management.
Key Common Elements
Through horizontal analysis of the public policy environment surrounding risk
management, several key elements were identified as influencing the development of a
platform for discussion :
- Managing uncertainty occurs within the process of making decisions. How that
process operates, and what considerations feed into it, are key to the ability to deal
effectively with uncertainty.
- There is a public element to virtually all government decision-making, and it is
a central and legitimate input to the process.
- Uncertainty in science, together with competing policy interests (including
international obligations) has led to increased focus on the precautionary approach.
- A decision-making process does not occur in isolation -- the public nature and
complexity of many government policy issues means that certain factors require active
consideration at each stage of the process.
Each of these elements, and their role in creating a framework of public risk
management, is reviewed in more detail in the sections which follow.
3.1 A Decision-Making Process
The process of making decisions is quite standard, regardless of the context or sector
considered, and this is perhaps the most fundamental linkage between the various
perspectives across government. Emphasis on various points in the process may vary, as may
the type, rigour or extent of actions considered, but the overall process is invariably
the same. These are the six basic steps:
- identification of the issue;
- analysis or assessment of the issue;
- development of options;
- decision;
- implementation of the decision; and,
- evaluation and review of the decision.
These steps can be as applicable to individual decisions about major purchases as they
are to the development of a policy position on the privatization of airports or safety
standards for children’s toys. How each step is managed and what considerations are
fed into them will vary, but this process forms the basic structure of the
framework for public risk management.
3.2 Incorporating the Public Element
In a policy environment where Ministers’ accountability to Parliament/the public,
and the role of public servants in serving the public interest, are fundamental to the
operation of government, recognition and understanding of public concerns is
critical to the resolution of issues.
To present this concept within the decision-making process, the assessment step is
developed into two contexts: empirical and public. They are separate processes, but
it should be noted that neither context works alone.
- In a public risk management framework, input from both the empirical and public contexts
of assessment ensures a more complete range of information is available, thereby leading
to the development of relevant and effective policy options.
- It should also be recognized that the development of policy options inherently involves
difficult trade-offs and the need to balance competing objectives and priorities, often
leading to second-best solutions when viewed from a singular perspective.
Moreover, either context can trigger attention to an issue. Often, consideration
of public concerns can increase (or, conversely, limit), the range of possible policy
options. As an example, consider recycling. Public sentiment was so strongly behind the
idea that it became environmental policy even in the face of technical, economic
assessments that indicated it was an idea ahead of its time.
3.3 Precautionary Approach
The precautionary approach is an increasingly important element of public policy. As a
method, or means, of dealing with uncertainty, it forces a conscious risk management
decision (to act, or to not act) more frequently. In this sense, the prevalence of
the precautionary approach itself reinforces the need for a risk management framework in
public policy.
While the approach means different things depending upon the context, one well-known
definition exists in respect of environmental protection policy, where Principle 15 of the
Rio Declaration states:
"In order to protect the environment, the precautionary approach shall be
widely applied by States according to their capabilities. Where there are threats of
serious or irreversible damage, lack of full scientific certainty shall not be used as a
reason for postponing cost-effective measures to prevent environmental degradation."
This definition indicates that a lack of knowledge about possible risks of a given
situation is not an excuse to avoid action, with certain caveats.
How this approach might be defined and applied in other sectors where scientific
uncertainty exists is still unclear. It appears that its application will likely vary
depending upon the severity of the risk, as well as the nature of the sector, or
policy area (e.g. more stringent applications where human health and safety is at risk).
There is a great deal of work evolving throughout the world as various countries and
trading partners seek to develop agreements and guidelines on how the approach may be
interpreted and applied in a manner that:
- serves domestic interests (according to societal values and priorities);
- is consistent with international obligations established through trade agreements
or otherwise; and,
- is flexible enough to have relevance in different policy areas.
For its part, Canada supports the Rio Declaration and Principle 15 has been
incorporated into the Canadian Environmental Protection Act (1999) and several
other federal and provincial statutes and environmental policies, but a comprehensive
position on applying the approach more broadly requires wider attention within government.
In the framework on public risk management, the precautionary approach is presented as
affecting both the development of options and the decision phases. While the approach is
clearly linked to scientific analysis, (it cannot be applied without an appropriate
assessment of scientific factors and consequent risks), it may also be impacted by
international considerations and, ultimately, guided by judgement, based on values and
priorities.
3.4 Constant Considerations
It was recognized a public policy decision-making process does not occur in isolation
and that there are often considerations which require ongoing attention throughout the
process. Three main categories of such factors were identified for purposes of the
framework:
- communications and consultation activities
- legal considerations; and,
- ongoing/operational activities.
Risk communications as defined earlier, is a two-way, interactive process. To
give effect to this definition, communication and consultation activities need to be
considered at each step in the process.
- As a matter of current practice, stakeholder involvement and consultations are
increasingly recognized as key to building acceptance and understanding of government
policy decisions -- tacking a communication package on at the end of a decision process is
neither a sufficient nor a successful means of communicating with the public and
interested parties.
- Particular challenges in developing a more integrated approach to communication and
consultation activities throughout the decision process need to focus on several of the
contextual aspects of risk:
- the importance of perception or assessments;
- degree of public tolerance for risk;
- the role that pro-active risk communication (e.g. information, education) may play in
building public understanding of risk and management of risk; and,
- the need to gain/maintain public trust and its impact upon the credibility of government
messaging.
Legal considerations were also identified as key concerns throughout a
decision-making process. An initial review of the main considerations in the context of
public risk management suggests that they include:
- exposure to legal liability (associated with a breach of a duty of care, i.e. the
duty to avoid causing loss or damage to others through negligence);
- responsibility and accountability; and
- compliance with international obligations (e.g. arising through international trade or
multi-lateral environmental agreements or otherwise).
Work related to these issues is ongoing (e.g. duty of care -- a concept referred to
frequently, but not always well understood). They are flagged in the framework to
highlight the importance of involving legal counsel throughout a risk management process
with the aim of understanding and planning for a range of legal implications.
Ongoing and operational activities includes various types of work that happen
continually, often unseen day-to-day, but critical to maintaining the ability to act on an
informed basis and, often serving as an early warning system.
- Research, surveillance, monitoring and audit of programs and policies are examples of
such activities.
- In this context, the capacity of government to carry out scientific and policy research
will have implications for the effectiveness of any risk management approach.
3.5 Synopsis of the Framework
The schematic below provides a synopsis of the framework issues identified above. It
focuses on functions, or steps in the process, rather than labels and specific
instructions. It draws out the key elements from a horizontal perspective in order to stimulate
discussion and facilitate a coordination of effort in developing a more
comprehensive approach to risk management in the government.
* Graphic available only in Adobe Acrobat format; View Annex A
At the same time, because of its general approach, the framework is
adaptable enough to be tailored to specific areas of specialization and may therefore be
used as a reference point in advancing the discussion of risk management into a case or
sector-specific context, and in comparing sectors as needed.
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