Page 122 - Proceeding 2015

FAMP NICOLAE Ciprian
CCASP QUALITATIVE ANALYSIS OF THE RISKS IDENTIFIED IN THE MANAGEMENT OF THE NON-
REIMBURSABLE FUNDS IN ROMANIA IN 2007-2013

3. RISK MANAGEMENT METHODOLOGIES USED WITHIN DE ROMANIAN NON-

REIMBURSABLE FUNDS MANAGEMENT SYSTEM

The main conclusions of the overall analysis regarding the risk management system used within the
Romanian non-reimbursable funds management system, partially published (Badea and Nicolae, 2015)

or in course of publication to date, are:

? risk management procedures used by the public authorities and agencies involved in managing
the non-reimbursable funds are reproductions of the Methodology for implementing internal

control standard "Risk Management", issued by the Ministry of Public Finance in 2007 in order
to support the implementation of Order no. 946/2005;

? the current procedures define risk as the problem (situation, event, etc.) that has not occurred,

but that might occur in the future, in which case the achievement of the intended results is
threatened or potentiated. In the first case, the risk represents a threat, while in the second risk
is seen as opportunity. Risk represents uncertainty in achieving intended results and should be

treated as a combination of probability and impact;

? although the use of non-reimbursable funds is essentially the same for all authorities and PROCEEDINGS OF THE 11 TH ADMINISTRATION AND PUBLIC MANAGEMENT INTERNATIONAL CONFERENCE ”Strategic Management for Local Communities” 30 th – 31 st October 2015 Bucharest
institutions involved, of course with a set of specific elements, the existing procedures are not

uniform, treating different the notion of risk itself and also the ways to take action for controlling
risks;

? the current procedures in force accept the fact that risk can be internal and may depend on

organization’s actions / omissions, so depending on the organization's own will / diligence;

? the current procedures do not include ways of financially quantify the risks;

? not all public authorities and institutions have developed and used risk registers;

? within the existing risk registers the majority of risks are operational risks (ex: risk of delay, risk

of failure / error detection, risk of quality of financing);

? some of the risks have direct financial effects (ex: certification of ineligible expenditure, repeated
payment of the same invoice included in several payment claims);

? there are three global risks (including with financial effects) concerning both each funding
program and the funds management system in its entirety:

? the risk of automatic decommitment (translated in low absorption rate of funds);

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