Homeland Security: Applying Risk Management Principles to Guide Federal Investments

Since the terrorist attacks of September 11, 2001, and the subsequent creation of the Department of Homeland Security (DHS), the federal government has provided DHS with more than 130 billion in budget authority to make investments in homeland security. However, as GAO has reported, this federal financial assistance has not been guided by a clear risk-based strategic plan that fully applies risk management principles. This testimony discusses the extent to which DHS has taken steps to apply risk management principles to target federal funding for homeland security investments (1) in making grant allocations, (2) in funding transportation and port security enhancements, (3) in other DHS mission areas, and (4) at a strategic level across DHS. This testimony summarizes previous GAO work in these areas.

From the terrorist attacks of 9/11, to Hurricane Katrina, homeland security risks vary widely. Managing these risks is especially difficult in today¿s environment of globalization, increasing security interdependence, and growing fiscal challenges for the fed. gov¿t. A forum of 25 experts was convened on Oct. 25, 2007, to advance a nat. dialogue on applying risk mgmt. to homeland security. Participants included fed., state, and local officials and risk mgt. experts from the private sector and academia. They identified: (1) what they considered to be effective risk mgmt. practices used by org. from the private and public sectors; and (2) key challenges to applying risk mgmt. to homeland security and actions that could be taken to address them. Illustrations.