The changing federal procurement environment makes risk management matter
For government contractors, risk and risk management are complex and changing issues. This is mostly due to the ever-changing legislative, political, oversight, and spending environments that are experienced in federal and state governments. The main issues causing these changes are:
- Human Resources Changes: HR related legislation and oversight can have a major impact on an employer’s wage payments, safety requirements, and numerous other activities that increase expenses and the need for compliance among employers.
- Federal Funding Changes: New political administrations may attempt to curb government spending in various ways… Spending changes can positively and negatively impact an employer’s revenue stream.
- Workers Compensation and Employee Lawsuits: When any of the above environments change, employers who are not aware of these changes become more vulnerable to employee litigation, penalties, and/or fines.