| Abstract [eng] |
The interest of public sector institutions in integration of risk management framework is rapidly increasing. According to a study conducted in the USA in 2015 by the multinational network of companies PricewaterhouseCoopers, more that 66 percent of participant public sector institutions have risk management framework integrated. Recently, risk management has gained a lot of attention in Lithuania as well. The importance of risk management is recognized in such documents as Lithuania’s Progress Strategy “Lithuania 2030” and the program of the Eighteenth Government of the Republic of Lithuania. In order to achieve their goals and operational efficiency, some Lithuanian public sector institutions (Bank of Lithuania, Ministry of Finance, etc.) are implementing risk management frameworks. Risk management in public sector is widely studied by various foreign authors (Klinke, Renn, 2019; Aven, 2016; Hatvani, 2015; Ahmeti, Vladi, 2017, etc.). In Lithuania, however, risk management analysis is fragmentary, possibilities of risk management framework integration in public sector, including municipal administrations, are not analysed. As a result, research problem of this project was formulated as follows – what are possibilities of risk management framework integration in Alytus district municipality administration? Therefore, the object of the research is the possibilities of integrating risk management framework in Alytus district municipality administration. The aim of the project is to determine the possibilities of integrating risk management framework in Alytus district municipality administration. In order to achieve the aim of the project, the following tasks were set: 1) to conduct theoretical analysis of risk management framework integration in public sector institutions; 2) to analyse the documents determining the order of risk management implementation in the EU, other states and Lithuanian public sector; 3) to analyse possibilities of risk management framework integration in Alytus district municipality administration. Research methods used in the project include: qualitative content analysis of scientific literature, information sources, recommendatory documents and legal acts, comparative analysis, interpretive qualitative analysis of interview transcript content, statistical analysis of quantitative data (descriptive), structured interview, survey and modelling. The project consists of three main chapters. The first one presents a theoretical analysis of risk management framework integration in public sector institutions as a result of which theoretical model of risk management framework integration was developed. The second one introduces the analysis of legal and recommendatory documents determining the order of risk management implementation in the EU, other states and Lithuania. The third one provides the description of research methodology and presents the results of the research. It is expected that the results will supplement the existing analysis of risk management framework integration in Lithuanian public sector institutions and be useful during integration of risk management frameworks in other Lithuanian municipal administrations. The research revealed that risk management in Alytus district municipality administration is perceived as part of internal control and is implemented through continuous risk assessment process. According to the results of research, risk management implemented in the administration lacks efficiency. The main factors that may have caused insufficient risk management efficiency include: lack of clarity and completeness of legal acts determining the order of implementation of internal control in Lithuanian public sector institutions and internal control policy of municipal administration, lack of precise methodology for assessing significance of risks, novelty of risk management phenomenon in municipal administration, lack of information on risk management, insufficient integration of risk management into daily activities of municipal administration, lack of efficiency of internal communication and systematic approach to risk management. In order to ensure the efficiency of risk management in Alytus district municipality administration, it is useful to integrate risk management framework for managing risks. Regarding the fact that risk management in municipal administration is perceived as part of internal control, it is most appropriate to integrate risk management framework into internal control system of municipal administration. The possibilities of integrating risk management framework in municipal administration include preparation of risk management policy and risk management methodology as well as creation of risk management structure. Risk management framework in municipality administration would enable to systematically manage risks and their negative impact on the goals and activities of administration and to exploit the potential risk management and opportunities of risks. |
