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OECD Recommendation

Integrate risk management strategies for mapping, detection and mitigation throughout the public procurement cycle.

 

  • Develop risk assessment tools to identify and address threats to the proper function of the public procurement system
  • Publicise risk management strategies, for instance systems of red flags or whistle-blower programmes, and raise awareness and knowledge of the procurement workforce and other stakeholders about risk management strategies

 

Risks to public procurement include:

  • Risks of waste or inefficiency  in all aspects of the procurement process, due to a lack of awareness on the part of the stakeholders involved or due to an objective difficulty in the case of complex projects;
  • Financial risks, particularly during periods of severe economic and financial uncertainty;
  • Risks of fraud, misuse of public funds or corruption, in case of misappropriation and
  • Reputational risks/potential damage to the image of the contracting authority too.

 

These risks should be actively managed, particularly in the framework of large events and large infrastructure projects where such risks are increased. 

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