Planning and Internal Risk Control in Public Sector

Planning and Internal Risk Control in Public Sector
Introduction

In order to meet the formal requirements for the preparation and publication of a management risk prevention plan, including the risks of corruption and related infringements, a General Secretariat of a Ministry of the Government of the Portuguese Republic awarded Knowledgebiz with the development of this project, which should integrate the setting up of an internal risk control system.

The deliverables of this project were considered strategic management instruments by the General Secretariat, and it was as a strategic subsystem that Knowledgebiz conceived and introduced it into the client organization.

01
The Challenge

The planning and internal risk control system to be developed covered all the activities of the General Secretariat, whether they were business or support. The project gains, however, a new dimension of challenge when it has to be completed in record time, only possible to face with a reinforced work team whose members have established skills in the area of risk management and relevant experience in the functioning of public organizations.

02
The Solution

A risk management system consisting of three parts was designed and organized:

· Risk Management Policy
· Risk Management Plan
· Internal Risk Control Subsystem

The Risk Management Policy, which closely followed the framework of the ISO 31000:2018 standard and the guidelines of ISO 9001:2015, established the principles, structure and process for risk management. The defined policy framed the construction of the risk management plan and the internal risk control. The Risk Management Plan, also developed under the ISO 31000:2018 standard, identified, analyzed, and assessed risks in order to design risk treatment measures. As for the Internal Risk Control Subsystem, it was set up based on what, on this subject, is recommended by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In the course of the risk management process, it was responsible for defining and implementing the control activities, establishing the information contents and communication and reporting circuits, as well as defining the subsystem's own monitoring activities, in order to improve its conception, execution, and effectiveness.

The assessment of risks in work processes focused on strategic and operational management risks, compliance, and corruption risks.

The Approach

The project was developed based on critical work processes, according to a set of activities organized into three phases:

• First phase: preparatory work;
• Second phase: risk assessment,
• Third stage: internal risk control.

The main activities in each of the phases were carried out, in the form of workshops, by the Knowledgebiz team and the different client work teams, constituting work units with scheduled deliverables. Work units were created by each organizational unit of the General Secretariat. It was up to a technical work unit to ensure the integration of risk assessment and control in the work processes across the various organizational units. All employees of the client's work teams were previously trained in the theory and technique of risk management.

The assessment of risks in work processes focused on strategic and operational management risks, compliance, and corruption risks.

The Results
  • The project developed harmoniously in the very short time frame set for its realization.
  • The Risk Management Policy was approved and disclosed at a higher level, and the risk management structure and process put into practice.
  • The Management Risk Prevention Plan, including those related to Corruption and Related Infringements, was made official.
  • The General Secretariat integrated the Internal Risk Control Subsystem into its daily operation, in accordance with the respective regulations.
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