risks. For the second year, human capital challenges, such as employee retention and engagement, and technology-related risks, including cybersecurity failures, remain the top emerging threats. The survey also found that 80% of respondents expect technology risks to impact their agencies significantly within the next three years.

Now in its tenth year, the annual survey provides insights into the current state of ERM across federal, state, and local governments. The report identifies key practices contributing to improved ERM maturity, such as including ERM in performance plans and having ERM leads report directly to agency heads. Nearly half of respondents noted their organizations have defined risk appetite statements, with many planning to increase focus on risk appetite management over the next year. Guidehouse, a consultancy serving both public and private sectors, and AFERM, a professional association dedicated to advancing federal ERM, continue to support agencies in strengthening risk management practices to meet organizational goals and safeguard operations.

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