IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT IN PUBLIC SECTOR IN THE CONTEXT OF EUROPEAN INTEGRATION
DOI:
https://doi.org/10.37332/Keywords:
Enterprise Risk Management (ERM), risk management in public sector, European integration, international risk management standards, international experienceAbstract
Lavrinenko O.V. IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT IN PUBLIC SECTOR IN THE CONTEXT OF EUROPEAN INTEGRATION
Purpose. The aim of the article is to substantiate the implementation of an integrated Enterprise Risk Management (ERM) system in the public sector and, based on an analysis of international experience to identify directions for transforming the organizational structure of national authorities in the context of a risk-based approach and European integration.
Methodology of research. The article employs a comprehensive set of general scientific, empirical, and special research methods, which ensured a systematic approach to studying the problem of integrated risk management in the public sector: analysis and synthesis – used to examine the structure of ERM and the generalization of best international practices for implementing ERM systems in the EU and Canada; deduction – applied to move from the general provisions of international standards to specific implementation mechanisms for Ukraine; structural-functional analysis – used to examine the "three lines of defence" model in the European Commission; comparative legal method – applied to compare legislative approaches to risk management in Ukraine and EU countries.
Findings. The state of ERM implementation has been identified at both the international and national levels. International standards and documents for the implementation of integrated ERM in the public sector are identified. In the context of European integration, the organizational structure of risk management is established using the example of the European Commission. Canada's experience in implementing effective ERM is analysed. A disproportion in the implementation of integrated ERM between the financial sector and the public sector is revealed.
Originality. The necessity of implementing an integrated ERM system in public authorities has been further developed with the aim of ensuring effective management of financial resources and long-term economic development of the country.
Practical value. The results of the research can be used for further transformation of the risk management system of public authorities and critically important enterprises of Ukraine, with the aim of ensuring efficiency in the distribution, monitoring, and control of public finances in the context of European integration.
Key words: Enterprise Risk Management (ERM), risk management in public sector, European integration, international risk management standards, international experience.
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