**Acknowledgements**

*Risk Management and Assessment*

**6. Conclusions**

Score-based risk analysis enables to prioritize actions, and its aim is to reduce risk:

• Risks in the bottom left corner (below nine points) pose the smallest threat to

After ranking risks, an organization must agree on actions to take in order to control particular risks. How they proceed depends on the level of acceptance of risk and the possibility to control it as well as the relation between the cost of reduc-

An organization should have a process of supervising the probability of the occurrence of risk. The manager should receive reports from a register of risk to be able to react to various levels of risk. Reporting on risk should be integrated into currently existing processes of internal reporting. Frequency of reporting should be adjusted to the organization, and measures related to high risk should be monitored on an ongoing basis [26]. The importance of risk management in the public sector is due to the requirement of the European Union to implement risk management systems in units from the public finance sector. During talks on EU accession, one of the requirements was to develop and implement financial management systems and control in units from the public finance sector and develop standards of financial control in self-government units. Controls are performed by an internal auditor and concern risks involved in raising and using public funds. Risk management standards are based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) model. In this way the legislator obliged units from the public sector to analyse and manage risk pertaining to completing public tasks. This results from the intention to provide citizens with services they need because risk management can streamline processes of making reasonable decisions. It is not the aim of the process to avoid risk but to increase the probability of achieving success in particular areas of operation of the public sector. This also results from the intention to manifest stability and adequate supervision of risk in order to complete tasks assigned by the public sector. Strengthening the function of internal control and risk management in the new Act on public finance, the Polish government follows other European Union countries. Risk management helps to protect the population and ensure efficiency of public administration in the event of a financial crisis or other threats. Changes which are increasingly visible in many Polish institutions are the components of a bureaucratic change in administration towards an effectively managed organization. The aim of this change is to increase the effectiveness of the public sector. Thanks to such an approach, the system of procedures in an organization is adequate to its current needs. The article described the particular stages in risk identification and a score-based risk assessment method, which shows the importance of risk management in units from the public sector for ensuring the possibility to make management

• Risks in the top right corner (almost certain, score above 16, catastrophic

• Risks in the middle of the matrix (score between 10 and 15) should be addressed and monitored; action should be taken in some cases.

an organization and frequently do not require any reaction.

ing or eliminating it and possible negative consequences of such risk.

impact) require immediate actions to be taken.

**66**

decisions early enough.

The project is financed within the framework of the programme of the Minister of Science and Higher Education in Poland under the name "Regional Excellence Initiative" in the years 2019–2022, project number 001/RID/2018/19, the amount of financing PLN 10,684,000.00.
