EFFECTIVENESS ASSESSMENT OF THE INTERNAL CONTROL SYSTEM AT NATIONAL INSTITUTIONS IN THE AREA OF CONFLICT OF INTEREST AND CORRUPTION IN LATVIA
DOI:
https://doi.org/10.17770/jresd2024vol16.8276Keywords:
conflict of interest, control, internal control system, organization, risk managementAbstract
Purpose and aim of the study: to assess the effectiveness of conflict of interest and corruption risk management at national public administration institutions and develop proposals for the improvement therein.
Design / Methodology / Approach: The research employed logical construction and deduction, the graphical and monographic methods, as well as SWOT analysis and pairwise comparison.
Main Findings: In 2017, a Cabinet Regulation of the Republic of Latvia regarding the implementation of internal control systems (ICS) to prevent conflict of interest and corruption risks became effective. However, some research studies found that the systems were practically formal and did not lead to effective risk management. Comprehensive ICS policies were found to be implemented by national institutions with the policies being designed by their risk management departments, and effective risk management was achieved by implementing three lines of protection as well as regularly reviewing and enhancing the risk management policies.
Originality: The novelty of the present research: no shortcomings were found in the legal framework for internal control systems or in the binding guidelines, yet there was a problem with meeting the requirements set by the formal legal framework, which were not aligned with the specifics of institutions and the respective field.
Implications: The research found that the application of risk management tools beyond the relevant legal framework for internal control systems by national institutions needed to be improved to increase the effectiveness of the system applied in practice and enhance risk management processes.
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