The State Property Fund will be the first state institution to implement a digital risk management system
The State Property Fund of Ukraine will be the first state institution to implement a digitalized risk management system. The project has started this week and will consist of several stages. Featuring their implementation, the Fund plans to obtain powerful tools for effective corporative management, protection of the state interests and identification of corruption risks.
In Ukraine, the National Bank, the State Emergency Service, and the Ministry of Justice have positive cases of risk management systems partial implementation. However, the SPFU's project is unique considering that the system will be implemented on the basis of modern IT solutions and will be maximum automated. It will cover the Fund`s headquarters, its regional offices, as well as the top enterprises that are subordinate to the Fund.
"The introduction of the system will reduce losses of state-owned enterprises managed by the SPFU to 5 times in the future. Risk management and compliance should be a part of the daily, ongoing process of management decision-making at all levels. This is the culture of corporate governance, transparency of any management decisions, and clarity of the work of Ukrainian state bodies for our international partners," reported Denys Shuhalii, First Deputy Chairman of the SPFU.
The system is based on three main standards: ISO, COSO, and INTOSAI, and allows analyzing all management decisions, identifying potential risks, and avoiding a significant number of negative events and the losses they can cause.
The system should also become an effective tool for identifying risks associated with corruption. Thus, maximum transparency of control mechanisms will be ensured by regulating responsibilities, powers and by recording the actions of users. Creating a unified set of indicators and using information from various sources, will help to identify potential problematic issues before they occur and prevent their negative consequences.
By September 2023, the Fund plans to form an appropriate organizational structure, conduct a diagnosis and develop a list of measures necessary to implement the system, including the creation of a risk map.
It should be noted that a multi-level risk management system introduction is part of the plan to harmonize Ukrainian legislation with the EU legislation and follow international best practices.