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The global risk landscape is rapidly evolving due to interconnected economies, societies, and technologies. To manage emerging critical risks, governments must anticipate, understand, and address these risks, which are transboundary, highly uncertain, and systemic. This Framework, supporting the OECD Recommendation on the Governance of Critical Risks, outlines a seven-step process for managing such risks. The steps include identifying and assessing risks, sharing information, evaluating management maturity, and developing strategic recommendations. Exercises are conducted to validate gaps and proposed solutions, while strategic plans ensure flexibility and adaptability in response to risks. Implementation integrates these emerging risks into traditional risk management processes, fostering resilience against current and future challenges. It provides a structured process for governments to validate identified gaps in knowledge, authorities and capabilities needed to manage emerging risks and to validate plans for building-in flexibility and adaptability to unforeseen or poorly understood risks.

The frequency and severity of extreme wildfires are on the rise in Greece, causing unprecedented disruption and increasingly challenging the country’s capacity to contain losses and damages. These challenges are set to keep growing in the context of climate change, highlighting the need to scale up wildfire prevention and climate change adaptation. This paper provides an overview of Greece's wildfire policies and practices and assesses the extent to which wildfire management in the country is evolving to adapt to growing wildfire risk under climate change.

This report takes stock of current ICT procurement practices in Chile, Colombia, and Mexico, focusing on vendor neutrality and market engagement in the purchase of personal computers and laptops. It also provides recommendations for improving access, competition, and market knowledge for procurement agencies in Latin America, based on OECD good practices and relevant principles, such as the 2015 OECD Recommendation on Public Procurement.

OECD countries are increasingly investing in better understanding the potential value of using Artificial Intelligence (AI) to improve public governance. The use of AI by the public sector can increase productivity, responsiveness of public services, and strengthen the accountability of governments. However, governments must also mitigate potential risks, building an enabling environment for trustworthy AI. This policy paper outlines the key trends and policy challenges in the development, use, and deployment of AI in and by the public sector. First, it discusses the potential benefits and specific risks associated with AI use in the public sector. Second, it looks at how AI in the public sector can be used to improve productivity, responsiveness, and accountability. Third, it provides an overview of the key policy issues and presents examples of how countries are addressing them across the OECD.

As part of broader digitalisation efforts, half of public employment services (PES) in OECD countries are employing Artificial Intelligence (AI) to enhance their services. AI is being adopted across all key tasks of PES, including most commonly to match jobseekers with vacancies. While several PES have been using such tools for a decade, adoption of AI has been increasing in recent years as these become more accessible. New AI use cases have emerged to assist employers in designing vacancy postings and jobseekers in their career management and job-search strategies. AI initiatives have significant impact on PES clients, changing how they interact with the PES and receive support, and PES staff, altering their day-to-day work. As PES seek to maximise the opportunities brought by AI, proactive steps should be taken to mitigate associated risks. Key considerations for PES include prioritising transparency of AI algorithms and explainability of results, establishing governance frameworks, ensuring end-users (staff and clients) are included and supported in the development and adoption process, and committing to rigorous monitoring and evaluation to increase the positive and manage any negative impact of AI solutions.

Subnational governments face a range of fiscal risks, defined as events whose realisation leads to significant deviations of revenue and/or expenditure from budgeted amounts. Fiscal risks reflect unforeseen macroeconomic developments, as well as structural shifts in the economy, including digitalisation and climate change. Sound management of these risks requires a comprehensive framework involving their identification, analysis, mitigation, sharing or transfer, and prudent accommodation. Within this framework, subnational governments need to strengthen their capacity to manage their own risks, but national governments also have a role to play. This includes mitigating risks created by national policies, minimising moral hazard in supporting subnational governments affected by exogenous shocks, and using their legislative powers to avert excessive subnational risk-taking. Effective intergovernmental cooperation is key to the sound management of subnational fiscal risks. The paper discusses how different levels of government can work together in applying this framework to the main types of risks. It also provides some examples of good international practices in the management of risks.

With interest rates at their highest levels in two decades, subnational governments (SNGs) are grappling with growing debt sustainability concerns. This paper investigates SNGs’ financing vulnerabilities by examining their debt levels and sensitivity to interest rate fluctuations. It provides an in-depth analysis of SNG debt portfolios, with a particular focus on marketable debt or bonds. While most SNG bonds have fixed rates and long maturities, some jurisdictions are significantly exposed to interest rate and foreign currency risks. Simulations reveal that interest expenses could rise substantially for some SNGs. Yet, worryingly, the variation in borrowing costs among SNGs within countries is often limited, suggesting potential weaknesses in market discipline. To navigate these challenges, the paper briefly explores how well-crafted fiscal rules, tax autonomy, and insolvency frameworks can help mitigate risks. It also highlights the need for further assessment of bank loans, as systematic information remains scarce. The paper provides insights for policymakers seeking to address risks and inform future reforms of SNG bond markets, reinforcing market discipline and bolstering fiscal resilience.

Governments worldwide are increasingly adopting behavioural science methodologies to address 'sludge' – the unjustified frictions impeding people' access to government services and exacerbating psychological burdens. Sludge audits, grounded in behavioural science, provide a structured approach for identifying, quantifying, and preventing sludge in public services and government processes. This document delineates Good Practice Principles, derived from ten case studies conducted during the International Sludge Academy, aimed at promoting the integration of sludge audit methodologies into public governance and service design. By enhancing government efficiency and bolstering public trust in government, these principles contribute to the broader agenda on administrative simplification, digital services, and public sector innovation.

Given the important role of strategic foresight in policymaking and resilience, the Government of Flanders has been taking steps to improve its capabilities in this area. This report outlines the main findings and recommendations of the OECD assessment of the strategic foresight system of the Government of Flanders. It includes a blueprint and roadmap for incorporating strategic foresight into the public administration of Flanders over the next five years.

Inter-municipal co-operation (IMC) has proved to be a constructive and efficient instrument in many EU and OECD countries for solving several issues at the local government level, including the lack of resources, administrative fragmentation, the investment burden of individual municipalities or better and more efficient organisation of public service provision. Although IMC is still often thought of as an alternative to the politically sensitive merging of small municipalities, nowadays its use has raised the interest of public administrations whose local governments are medium- and large-sized and that see this instrument as a way to empower local governments, provide them with more responsibilities, ensure sustainability of public services and fuel planning capacities and strategic thinking at the local and regional level. This paper summarises examples from EU and OECD countries where IMC either has a long-standing history or has recently received increased support and attention. It also provides an analysis of the legislative basis, support and incentives and practical data of IMC in the Western Balkan administrations. The paper offers several recommendations specific to the Western Balkan administrations for how to benefit from IMC.