RISK MANAGEMENT IN THE PUBLIC SECTOR PART 2

The evaluation of the risks identified are analyzed and determined the probability of occurrence of risks and their possible impact on achievement of objectives. Risks are assessed in terms of their probability and impact. Assessment was made ​​on five-point scale from 1 to 5, where "1" is the lowest value and "5" is the highest value. Risk rating is calculated as follows: P x S = V, where: P - probability of occurrence of the event; S - significance of the event (impact); V - vulnerability (rating). After the assessment is a record of identified risks in the administrative structure (Appendix № 1), having regard to specific objectives for the year. Risks are categorized depending on the rating in four main groups 5 : - Risks with low ratings - rating from 1 to 5; - Risks medium tending to low rating - a rating of 6 to 10; - Risks medium tending to rated - rating from 11 to 18; - Risks highly rated - rating from 19 to 21. Overall risk assessment is calculated by the following methodology: - The risks low rating is given a value "1"; - On an average risk rating (average tending to low ratings and average tending to rated), a value "2"; - The risks high rating given value "3". After the identification and evaluation is carried out control activities relate to: • risk reduction (treatment) - the introduction of control activities to limit the impact or probability of risk implement a mechanism for control by the Director and the respective heads of departments to implement controls and compliance the current internal rules. • Risk sharing - by carrying out relevant coordination procedures with individual organizations from the public and private sector, which administrative structure has established relations. • risk tolerance - acceptance of risk level, which is estimated at activities in which the probability of occurrence and its impact are low, i. e. a limited / minor impact on achieving the objectives of the Directorate and organization as a whole. • risk transfer - in activities for which it is possible some of them to performed by other departments or bodies. It is each major activity related to the management of risk, be documented. By documenting each stage of the management process risk, including the description of the selected appropriate response / action and 3 officials responsible for implementation of these actions in certain periods creating conditions for regular and systematic review of the process. Monitoring and tracking the process of managing risk achieved by continuous and systematic monitoring of risks and reporting their condition, the objective is to monitor how the risks are managed successfully, i.e. whether controls actually minimize risks and whether achieving the objectives threatened by these risks. Periodically and in operating order coordinator risk management level working group review, analysis, report and discuss with the President of Working Group on risk management status of identified risks and the need for change in control activities and the objectives of the monitoring. To support the implementation of periodic monitoring is introduced internal reporting procedure to identify risks, subject to the requirements for timeliness, frequency and completeness. Coordinator risk management level working group responsible for the implementation of the procedure internal reporting. The organizational structure of risk management in the administrative structure of the public sector - state and public administration, consists by: • Chairman; • Secretary; • Members. At the discretion of the Chairman of the working group meetings can be invited and other servants of the administrative structure. Responsibilities for risk management are divided as follows: • The head of the administrative structure is responsible for managing risk within the meaning of Article 2 and Article 12 of FMCPSA. Approve rules for management Risk and Strategic Risk Management in the administrative unit. Report to the higher authorities within the time allowed and the occurrence critical risks; • deputy head and chief secretary are responsible for managing risk in their departments; • Director of controlling the risk factors for the activities of Directorate and take decisions within its powers to limit and control identified risks. Mandatory national rules risk management in accordance with this strategy. In the analysis of implementation of the monthly program for the previous month and the preparation of program next month monthly review of risk-register and updated as necessary. Designate an employee to perform functions coordinator at departmental level; • The head of the department organizes and controls the efficient running of the processes of the system for risk management organization created to work after for compliance with the applicable employees control activities, inform periodically Director for the state of the risks and control work undertaken; • Employee / expert - participate in the processes of risk management by application of certain control procedures comply are rules and 4 promptly notify the Coordinator and Head of Department in found violations; • Coordinator risk management working group level: - Complete and updated risk register of the administrative structure; - Leads documentary reporting risk management and implementation plan control activities in the management of risks in the administrative structure; - Provides current and signal information to the President and members of the Advisory Board-risk register and plan for the implementation of control activities in management of risks in the administrative structure; - Coordinate coordinators risk management level Directorate; • Coordinator of risk management at different levels: - Complete register of risks at the level of structural unit; - Provides information on risk register-level structural unit coordinator risk management working group level (minimum 3 months). In the preparation of internal rules for risk management in public sector is necessary to provide a procedure for internal reporting. To support periodic monitoring of process management risks identified in compliance with the requirements for timeliness, periodicity and completeness to the Working Group for managing risk designate a coordinator-level working group to coordinate the process risk management. Coordinator traces the process of risk management and timely inform the President of the Working Group on Risk Management. The internal rules for risk management are introduced all levels organizational structure of the administrative structure in the public sector involved in the process of risk management. In conclusion we can say that adequately designed internal rules for risk management in the public sector - the state and public Administration will ensure success in the identification of risk fields administrative structure, as well as their timely removal or limit. With identification and risk assessment is carried out and control activities related to: risk reduction, risk sharing, risk tolerance, and his transfer. By betting on monitoring the structure of the internal rules and tracking the process of risk management is carried out continuously and systematic monitoring of risks and reporting on their condition, the objective is to monitor how the risks are managed successfully.