As the external auditor of government departments the National Audit Office support well managed risk taking intended to result in tangible benefits for taxpayers. This report is intended to help promote improvements in risk management by departments by identifying examples of good practice from both the public and the private sector. The report sets out (i) why risk management is important; (ii) how well risk management is understood and implemented by departments, agencies and non departmental public bodies (NDPBs) ? collectively referred to as ?departments?; and (iii) what more needs to be done to improve risk management.