Does anyone know of examples of adding the element of risk into budget decision making? I know we all have it in our minds when considering proposals for funding. However, I'm wondering if anyone out there has developed a simple (or simple as possible) method for using risk to determine whether to fund one proposal over another.
Let's say (for example... this is completely hypothetical)...
The Sheriff has requested $400,000 in new positions due to larger jail populations
The Building Services Department wants $400,000 to remodel the lobby because the floring keeps coming up and creating tripping hazards to public and staff
Leaving out all of the other issues we usually look at. If potential risk of not funding was included as a variable in the decision making process, is there an easy way to determine what that is?
Any examples or information would be great.
Response needed by
Friday, February 1, 2013