A risk governance deficit is a failure in the identification, framing, assessment, management and communication of the risk issue or of how it is being addressed. As such, it can also be understood as a risk governance challenge.
Governance deficits are common. They may be found throughout the risk handling process, and limit its effectiveness. They are actual and potential shortcomings and can be remedied or mitigated.
Potential consequences of risk governance deficits include:
- Loss of opportunities
- Cost of inefficient regulations
- Loss of public trust
- Inequitable distribution of risks and benefits between countries, organisations and social groups
- Excessive focus on high profile risks, to the neglect of higher probability but lower profile risks
- Failure to move from business as usual and trigger action.
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