RISK MANAGEMENT IN THE PUBLIC SECTOR PART 1

DETERMINATION OF INTERNAL RULES RISK MANAGEMENT IN THE PUBLIC SECTOR - STATE AND PUBLIC ADMINISTRATION
 Keywords: risk management, internal rules, public sector,

government and public administration, risk rating, control activities, monitorin
 Summary: The article examines the moments in determining the internal rules for risk management in the public sector - the state and public Administration regulated by the Financial Management and Control public sector. Outlines the main phases of the structure, which is necessary to contain internal rules for risk management for specific administrative structure. Risk management is a continuous process of identifying, evaluating and Observation of the various types of hazards that can affect the achievement strategic and operational objectives in the public sector - the state and public administration and the introduction of the necessary control activities to limit their impact to a normal level. Introduction of internal rules for risk management in public sector is regulated by the Financial Management and Control in the Public sector 2 . Internal rules for risk management is determined according specific activities of the administrative structure of the public sector. They identify risks that may arise in the process of Attainment of goals to achieve, assess the likelihood of occurrence them and their possible impact, identifying measures and controls to limiting the risks. Regulates the ongoing monitoring of the process of risk management and the ability to update it if necessary. Determination of internal rules for risk management aim introduction of procedures and controls in order to control and reduce the risk of default of the planned strategic and operational objectives, activities and tasks. Their implementation should ensure that the objectives and also that no adverse events occur or they can be predicted and neutralized time. In the drafting of internal rules on risk management in public sector is necessary in the structure should include the following elements: • Identification of risks; • Evaluation of individual risks; • Identification and implementation of control activities; • Monitoring and tracking the process of risk management. • Reporting of possible events that could affect negatively the achieving the objectives of the specific administrative structure of the public sector. In determining the rules for risk management used standard approach to management, including the following stages: 1 • Identification of risk factors; • Determination of the evaluation scale for each risk factor; • Determining the weights of risk factors; • Evaluation of each unit; • Classification of units. Pursuant to the financial management and control in the public sector necessary that any administrative structure of the public sector have approved a strategic plan that reflects the objectives and priorities its activities. The plan approved by the respective head and covers a period 3 years. On the basis of the Strategic Plan is prepared Annual Operating Plan that year, covering the annual priorities, objectives, measures and activities the current year. The operational plan is updated annually as it determines tasks, time schedules and the persons responsible for each set purposes. The main risk areas in each administrative structure public sector - state and public administration must identify and to manage, are related to: The influence of external factors: • regulatory changes that are associated with changes in regulations regulations, applicable law, inaccurate and incomplete proposals for change regulations, contractual relations with partners - risks that can cause a change in the scope of the planned actions or impose restrictive measures; • political changes associated with the change of government, which can a change in the strategic and operational objectives and priorities administrative structure. Risks of activities related to: • achievement of the strategic and operational objectives; • extent, accuracy and quality of implementation of activities; • compliance with the legislation, development and implementation of various rules and procedures concerning the activities of the administrative structure; • condition and development of Information systems in administrative structure; • realization of projects without the required risk assessment; • innovations - in non opportunities for innovation, ignorance of the best European practices, introduction of new approaches without necessary risk assessment. Risks to human resources (operational risks) in: • turnover or shortage of qualified staff; • long-term sick leave or skilled in a particular area..................