Improvement of risk management mechanisms in the public sector

Abstract

This article addresses the critical inadequacy of reactive risk management approaches in Ukraine’s public sector, which operates under unprecedented uncertainty conditions including full-scale war, prolonged economic instability, accelerated digitization, demographic shifts, and climate change. The research identifies fundamental systemic vulnerabilities in current risk management practices: fragmented risk identification and assessment processes, absence of comprehensive threat management methodology, weak integration of risk management into strategic planning and decision-making processes, and predominant reactive response models rather than proactive threat anticipation and prevention. The study reveals that Ukrainian public sector organizations, constrained by traditional bureaucratic culture and rigid hierarchical structures, demonstrate structural inability to rapidly adapt to sudden changes in security, economic, and social environments. Information disconnection between different agencies prevents formation of comprehensive understanding of interconnected risks spanning multiple public administration spheres simultaneously. The absence of unified standards for risk classification, assessment, and reporting makes comparison and consolidation of risk information at national level impossible. The research develops a comprehensive conceptual model for systematic multidimensional transformation encompassing fundamental principles, institutional architecture, procedural mechanisms, practical tools, and organizational culture. Twelve foundational principles form the conceptual framework: systematicity, proactivity, adaptability, inclusiveness, transparency, proportionality, evidence-based approach, continuity, integration, resilience, ethics, and innovation. The multilevel architecture operates across strategic, sectoral, and regional levels, with the strategic level establishing a Central Risk Management Coordination Body within the Cabinet of Ministers, sectoral level implementing specialized risk management units in central executive bodies, and regional level adapting approaches to territorial specificities while engaging local communities. The practical toolkit integrates risk matrices, threat registers, key risk indicators, stress testing, scenario planning, bow-tie diagrams, and FMEA/FMECA methodologies specifically adapted for public sector characteristics. Cultural transformation through systematic personnel training, restructured motivation systems, and effective communication channels represents the most critical transformation aspect, converting formal procedures into integrated components of daily management thinking. The model specifically addresses Ukrainian wartime realities including martial law operations, resource limitations, corruption challenges, European integration commitments, and accelerated digitization. Implementation mechanisms include pilot projects, phased rollout, and adaptive approaches balancing short-term survival needs with long-term institutional development goals. Successful realization will fundamentally transform Ukrainian public sector capabilities from reactive crisis response to proactive risk anticipation, prevention, and organizational resilience building.