RISK MANAGEMENT IN LOCAL GOVERNMENT UNITS IN THE LIGHT OF MANAGEMENT CONTROL STANDARDS
RISK MANAGEMENT IN LOCAL GOVERNMENT UNITS IN THE LIGHT OF MANAGEMENT CONTROL STANDARDS

Summary/Abstract: The aim of the article is to analyse risk management systems in local government units (LGUs) in the context of applicable management control standards. In the light of the Public Finance Act of 2009, local governments are obliged to implement risk management mechanisms as a tool to support the achievement of public objectives. However, numerous studies and reports indicate the dominance of the formalistic approach, which consists mainly in the creation of documentation without a real risk analysis. The article is based on an analysis of the literature, legal regulations, and the results of a case study of 12 local government units from three voivodeships, differentiated in terms of the level of sophistication of the implemented systems. The main research questions concern the effectiveness of existing solutions, the identification of implementation barriers (including HR and financial barriers) and the possibility of integrating risk management into the decision-making process. As a result of the analysis, specific recommendations and good practices were proposed that can contribute to increasing the efficiency and transparency of local government activities.

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