RISK MANAGEMENT IN THE PUBLIC SECTOR OF SERBIA AND CROATIA: A COMPARATIVE ANALYSIS OF FORMAL AND PROCESS MATURITY

Abstract

Risk management in the public sectors of Serbia and Croatia is examined by distinguishing between the formal establishment of risk management instruments and their process maturity in practical application. It starts from the assumption that the existence of strategies, guidelines, risk registers and reporting templates represents an important, but not sufficient, condition for effective risk management. The actual maturity of the system is reflected in whether these instruments are used in planning, decision-making, monitoring of weaknesses, implementation of corrective measures and assessment of remaining, or residual, risk. The aim of the research is to compare the available indicators of risk management development in the public sectors of Serbia and Croatia, with particular emphasis on the difference between formally established instruments and their process usability. The methodology is based on a comparative analysis of official reports, guidelines and publicly available documents relevant to financial management, internal control and risk management. In the case of Serbia, the analysis focuses on direct quantitative indicators, such as the adoption of risk management strategies, preparation of risk registers and use of risk management guidelines. In the case of Croatia, the analysis focuses on process indicators, including the Statement of Fiscal Responsibility, the Fiscal Responsibility Questionnaire, identified weaknesses in internal controls, internal audit opinions and activities aimed at developing integrated risk management. The expected contribution of the paper lies in a clearer understanding of the relationship between formal institutionalisation and the practical use of risk management as an instrument of managerial accountability, more efficient use of public resources and improved public governance.