Strategic Risk Management in Government: A Look at Homeland Security

Strategic Risk Management in Government: A Look at Homeland Security
The report under consideration is entitled "Strategic Risk Management in Government: A Look at Homeland Security" and includes two articles dealing with the federal government alternatives to increase its capability to guarantee strategic risk management for efficient resource allocation development. The report generally embraces a wide range of questions within the issue of strategic risk management and resource allocation interrelation and logically describes the history of strategic risk management as well as paints a picture of obstacles, findings and recommendations in tackling the issues of the present-day system imperfection.

Let us consider the article “Improving Strategic Risk Management at the Department of Homeland Security” by David H. Schanzer, an Associate Professor of Practice at the Sanford School of Public Policy at Duke University, co-director of the Institute fro Homeland Security Solutions, and Joe Eyerman, the co-director of the Institute of Homeland Security Solutions, the director of RTI’s Health Security Program and the adjunct assistant professor at North Carolina State University.

The scholars tried to consider the problem from different angles and the main point lied not only in informing the readers of the role of strategic risk management and the newly-created Department of Homeland Security in the process of the resources allocation’s decision-making, but generally in discussing the challenges of its application, the obstacles to its efficient functioning and providing the recommendations that may contribute to finding better solutions to improve the homeland security. DHS’s attempts to solve the problems of homeland security despite structural, theoretical and political obstacles are chosen as a subject of the article.

The scholars from the very beginning attract attention to the scale of the issue under consideration and give convincing arguments on the significance of well-established methodology applying for the constantly changing homeland security nature. They underline the vastness of problem, try to consider it objectively and claim there can be no single “right” answer for such a complex issue. Substantiating their viewpoint they provide an example of strategic risk management in homeland security and establish the connection of homeland security issues with such issues as government employment, protection of proprietary information etc (Schanzer & Eyerman, 17). Having provided an extended thesis on the scale of the problem of resource allocation, the scholars present arguments on the benefits of the risk management principles implementation in the worked out management cycle aimed at risk management (Schanzer & Eyerman, 18).

The researchers argue the importance of DHS in meeting the needs of incorporating risk management principles into resource allocation decisions and identify “challenges to develop a truly national structure for defending the nation” against terrorism and non-terrorism harm (Schanzer & Eyerman, 11). They urge of necessity to improve the Department of Homeland Security achievements, though they evaluate positively its role in the question of homeland security funding. However, they give arguments dealing with potential gap in security that is the result of precarious strategies dealing with federal spending on homeland security. They analyze numerous calls for improved risk management and “building integrated, effective and harmonized architecture for risk management” (Schanzer & Eyerman, 13). Analyzing the experts’ assessment of the current situation they determine the risks to homeland and the importance of a risk management approach in resources allocation and decision-making process (Schanzer & Eyerman, 14).

The authors map out perspectives reflected in the goals of DHS’s strategic plan but do not withhold its drawbacks underlying the risks the DHS budget did not address (Schanzer & Eyerman, 21). They also critically overview the security programs, enlist the findings that support the thesis and offer a number of recommendations to address homeland security threats (Schanzer & Eyerman, 26).

The second article of the report by Veronique de Rugy, a senior research fellow at the Mercatus Center, George Mason University, is entitled “Applying Strategic Risk Management to Allocating Resources for Homeland Security: A Case Example of Port Security” and concerns the need for the increased use of Strategic Risk Management in developing a national strategy to fight terrorism and allocate counter terrorism resources, preparing risk analysis, planning scenarios and working out possible resource allocation for each option (Rugy, 43).

Regarding international terrorism as the greatest challenge the society faces today, the scholar’s thesis deals with the explanation of the role of strategic risk management in devoting more resources against the threat of the most serious attacks and spending less on threats that have smaller consequences (Rugy, 43). Rugy often refers to D. H. Schanzer and J. Eyerman article’s data and her findings are especially valuable, as they practically show the way atrategic risk management can be applied in the area of maritime security and thoroughly describes all the steps assisting in improving homeland security and appropriate allocations distribution.

Her research is particularly topical in terms of the US maritime trade role in the US economy, the disruption of which inevitably leads to significant economic consequences worldwide (Rugy, 44). The scholar points out the limited facilities and little traffic in the US system of port protection that is considered imperfect by the researcher. She emphasizes the necessity to rethink the present-day policy-making strategies and reduce the underinvestment in high priority threats. Moreover, she gives convincing evidence on the way a strategic risk management approach will help in finding solutions. Having done the fundamental research based on the recent and reliable data from government reports and congressional testimony, Rugy vividly and visually demonstrates how the government may use risk analysis in allocation resources (Rugy, 45). The scholar provides latest data on resources spending and characterizes the programs, including DOD’s Cooperative Threat Reduction program and container security programs. The most essential data is tabulated and shows which attacks are more severe for the port security system, as well as demonstrates possible resource allocation for each option and provides other information connected with the probability of successful terrorist attacks. Having analyzed the key questions on risk analysis, the researcher considers the assessment of two major risks identified within the study and develops resource options again presenting the evidence of the role of strategic risk management in homeland security resource allocation (Rugy, 58). The scholar regards strategic risk management as a process and identifies security actions, estimating the probability of their success. Rugy concludes the study by claiming that “there is no standard response to each security scenario”, but in this context as the government tries to provide the highest level of security, strategic risk management turns out to be even more essential (Rugy, 62).

The two articles comprise a unity and supplement each other providing evidence on the link of strategic risk management and resource allocation and presenting a case example of applying it to port security, enabling new approaches of strategic risk management that come to the scene and improve the current situation in homeland security.

Eyeman, J., Schanzer D.H., Rugy V. (2009). Strategic Risk Management in Government: A Look at Homeland Security. Retrieved June 15, 2010, from

Strategic Risk Management in Government: A Look at Homeland Security 8.6 of 10 on the basis of 3671 Review.