Managing Risk

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Abstract

Risk management, a tool traditionally used by government in financial management, could well become an integrated approach to public decision making. The study of three public agencies of the Government of Quebec suggests that a risk management approach can be used to stabilize and reduce public expenditures, and to coordinate economic development in an uncertain world. Results show that these public agencies have responded to financial pressures by transferring part of their financial risk to other participants in the system, by associating directly the main stakeholders to program delivery and by establishing a correct assessment of the net benefits of risk taking.