Risk and Risk Management in the Public Sector : A Theoretical Contribution

Abstract

All public and private sector organizations are vulnerable to internal and external integrity risks, such as fraud and corruption and others. In the absence of mechanisms to identify, analyze and manage these risks, they can have negative consequences such as economic losses, security applications and reputational applications. In turn, these impacts can erode citizens' trust in public services and trust in government. In order to preserve the integrity of public sector organizations, effective risk management systems are essential, especially in high-risk areas, such as financial management, information technology, fraud and corruption among others. in a context characterized by an uncertain organizational environment. By adopting a risk-based approach, public sector organizations can apply laudable controls that strengthen oversight, without unduly burdening the organization or impairing efficiency. At the same time, it can reduce the perception of excessive control burden among staff and thus reinforce their full commitment to integrity. The objective of our article is to define new concepts relating to the study of risk and risk management in the public sector.