Skip to main content

Risk Analysis as an Instrument of Public Management

Abstract

The catalogue of financial risks identified by researchers and defined in relation to the business sector indicates that, at the micro level, almost all of them may also relate to particular entities in the public finances sector. However, there are fairly significant differences when it comes to objectives set for public entities, which frequently provide public goods, and the manner by which their operations are financed. The public sector, accordingly, does not view financial risk in the same way as private enterprise and because less exposed to financial damage manages risk differently. Moreover, it should be noted that the impact of particular types of financial risk on the financial standing of the whole sector, and on that of individual entities across the sector is different. Additionally, failure to assess and mitigate risk decisively on the part of public administrators in the medium and long term may have a huge influence on socio-economic growth globally.

Keywords

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Assistance provided to exporters is part of economic policy pursued by the state. The purpose of such aid is to maximize the success of Polish companies that sell their goods and services abroad, particularly exporters that expand market outlets and execute innovative projects and investments. One form of such support is an insurance instrument made available to exporters that ensures safe trade throughout the world – especially in markets labelled as risky. The act on Export Insurance Guaranteed by the State Treasury of 7 July 1994 authorizes KUKE S.A. (Korporacja Ubezpieczeń Kredytów Eksportowych Spółka Akcyjna to provide insurance not available from private insurance companies. Thanks to this, Polish exporters may forge trade relationships with new business partners, e.g. from the Commonwealth of Independent States, and carry out complex, frequently long-term investment and trade projects. A prerequisite for benefitting from state-supported insurance is that the product should genuinely be of Polish origin , in compliance with principles set out in the Ordinance of the Minister of Economy of 19 December 2014. See the website of KUKE).

  2. 2.

    Similarly for international exchanges when experiencing failure in gambling, there is the probability of the occurrence of many types of risk. Essentially, gambling is closely related to the game theory, which as a mathematical branch is committed to examining optimal behaviour during the conflict of players’ interests. It originates from the analysis of gambling games. Furthermore, the theory is applied in IT science (artificial intelligence), economics, biology and sociology. Any conflict situation is interpreted as a game and its participants all termed players. Every player makes use of his own conduct strategy, and then, depending on that and other participants, each player receives remuneration in utility units. These may be money or increased chances. Generally, utility units reflect the type of the game. Moreover, the game theory deals with strategies to be selected by players so as to gain highest possible profits. In effect, its adoption facilitates the recognition of rational solutions to problems.

Bibliography

  • Bulletin of the Commission of Insurance Terminology of the American Risk and Insurance Association. (1966). 2(1).

    Google Scholar 

  • Denenberg, C. H. S. (1964). Risk and insurance. Englewood Cliffs: Prentice Hall.

    Google Scholar 

  • Deputy Minister of Finance Mirosław Sekuła during the opening of training schemes devoted to management by objectives for bodies in administration in 2012/2013 informed participants that “Management in public administration is archaic…”, see a website of the Social Insurance Fund: http://www.zus.pl/warsztaty/materialy.asp?id=1

  • Dziawgo, D. (1998). Credit-rating. Ryzyko i obligacje na międzynarodowym rynku finansowym (p. 250). Warszawa: Wydawnictwo Naukowe PWN.

    Google Scholar 

  • Growth trends for the SME sector in the assessment of entrepreneurs in the first half of 2012. Ministry of Economy, No. 2/2012.

    Google Scholar 

  • Jajuga, K. (scientific ed.). (2009). Zarządzanie ryzykiem. Warszawa: Wydawnictwo Naukowe PWN.

    Google Scholar 

  • Kaczmarek, T. T. (2004). Ryzyko w handlu międzynarodowym. Gdańsk: ODDK.

    Google Scholar 

  • Kaczmarek, T. T. (2010). Zarządzanie ryzykiem. Ujęcie interdyscyplinarne. Warszawa: Difin.

    Google Scholar 

  • Kalinowski, M. (2012). Ryzyko walutowe zarządzanie ryzykiem w przedsiębiorstwie, CeDeWu.pl, Warszawa, edition I.

    Google Scholar 

  • Kamiński, A. Z. (2008). Administracja publiczna we współczesnym państwie. In J. Czaputowicz (Ed.), Administracja publiczna. Wyzwania w dobie integracji europejskiej. Warszawa: EIPA, Wydawnictwo Naukowe PWN.

    Google Scholar 

  • Kieżun, W. (2002). Struktury i kierunki zarządzania państwem, “Nauka”, No.1.

    Google Scholar 

  • Knight, C. F. H. (1921). Risk, uncertainty and profit. Boston: Houghton Mifflin Company.

    Google Scholar 

  • Komorowski, J. (2012). Budżet zadaniowy jako narzędzie racjonalizacji gospodarki budżetowej. In P. Albiński (Ed.), Budżetowanie zadaniowe w kontekście sanacji finansów publicznych w krajach Unii Europejskiej. Warszawa: Oficyna Wydawnicza SGH.

    Google Scholar 

  • Kosikowski, C. (2011). Naprawa finansów publicznych w Polsce, Wydawnictwo Temida 2, Białystok.

    Google Scholar 

  • Krynicka, H. (2006). Koncepcja zarządzania w sektorze publicznym (New Public Management), Prace Instytutu Prawa i Administracji w Sulechowie, Studia Lubuskie PWSZ w Sulechowie, nr 2.

    Google Scholar 

  • Nahotko, S. (2001). Ryzyko ekonomiczne w działalności gospodarczej. Bydgoszcz: Oficyna Wydawnicza Ośrodka Postępu Organizacyjnego.

    Google Scholar 

  • Najnigier, S. (2008). Administracja, czy biznes?. In: Administracja publiczna. Wyzwania w dobie integracji europejskiej, ed. Nauk. J. Czaputowicz, EIPA, PWN, Warszawa.

    Google Scholar 

  • Opolski, K., & Modzelewski, P. (2004). Zarządzanie jakością w usługach publicznych. Warszawa: Wydawnictwo CeDeWu.

    Google Scholar 

  • Pfeffer, I. (1956). Insurance and economic theory. Illinois: Richard. D. Irwin, Inc.

    Google Scholar 

  • Pogoda, A., Chrzanowski, M., Marczewski, K. (2010). Fundamentalne znaczenie miernika jako elementu ściśle skorelowanego z celami w ramach budżetu zadaniowego. In: budżet zadaniowy w administracji publicznej, ed. nauk. M. Postuła, P. Perczyński, Ministerstwo Finansów, edition II, Warszawa.

    Google Scholar 

  • Rymarczyk, J. (2002). Handel zagraniczny, Organizacja i technika. Warszawa: PWE.

    Google Scholar 

  • Schick, A. (2008). Państwo Sprawne. Rozmyślania nad koncepcją, która nie doczekała się jeszcze realizacji, choć jej czas już nadszedł, in: Administracja publiczna. Wyzwania w dobie integracji europejskiej, red. nauk. J. Czaputowicz, Europejski Instytut Administracji publicznej, Wydawnictwa Naukowe PWN, Warszawa.

    Google Scholar 

  • Staniek, Z. (2012). Mikroekonomiczna rola państwa. In M. Garbicz and Z. Staniek (Eds.), Mikroekonomia. Problemy zawodności rynku. Warszawa: Wydawnictwo Wyższej Szkoły Menedżerskiej w Warszawie.

    Google Scholar 

  • Starczewska-Krzysztoszek, M. (2012). Szanse i zagrożenia dla rozwoju mikro, małych i średnich przedsiębiorstw. A report on the results from the research prepared by PKPP Lewiatan within the project “Monitoring pf the condition of the SME sector over 2012–2012” co-financed by the EU within the European Social Fund, Lewiatan/PARP, December, Warszawa.

    Google Scholar 

  • Willet Cf, A. H. (1951). The economic theory of risk and insurance. Philadelphia: University of Pennsylvania Press.

    Google Scholar 

  • Zieleniewski, J., & Szczypiorski, S. (1963). Zasady organizacji i techniki handlu zagranicznego. Warszawa: PWE.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Marta Postuła .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Postuła, M. (2017). Risk Analysis as an Instrument of Public Management. In: Raczkowski, K. (eds) Risk Management in Public Administration. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-30877-7_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-30877-7_4

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-30876-0

  • Online ISBN: 978-3-319-30877-7

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics