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
Related Principles
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.
Related Tools
Pre-tendering
Post-award
All phases
Country Cases
Risk assessment tools and methods to identify and address threats to the proper function of the public procurement system
- Allocation of risks during the construction of Heathrow Airport Terminal 5 (UK)
- Conflict of interest management during tender evaluation in Australia
- Financial disclosure and conflicts of interest: State of Illinois, United States
- Four-eyed principle used in the Tappan Zee Bridge Project, New York State (USA)
- Procurement probity plans by the Queensland Government (Australia)
- Staff rotation in the German civil service
- CPB methods to follow up RBC objectives in Denmark and Sweden
- Tasmania's (Australia) checkslit of potential risks in the goods and services procurement process
- Debarment from public procurement procedures for violations of integrity in Mexico
- Integrating RBC objectives along the full supply chain in Canada
- Integrating RBC objectives along the full supply chain in Sweden
- UK Digital Buying Guide
- Building Risk Management Capability in the Australian Government
- The Committee for Control and Institutional Performance (COCODI) in ISSSTESON
- Corruption risk management: The example of Colombia
- England – Risk Assessment and Registration at the National Health Service (NHS)
- Estonia – Regulating the Risk Management in Legislation and Guidelines
- Integrity Officers in Austria’s Federal Government
- Data-mining to identify corruption in public procurement in the European Union
- Germany’s contact persons for corruption prevention
Promotion of risk management strategies
- Conflict of interest guidelines of the Goverment of Western Australia
- The Anti-Corruption Strategy of the Australian Federal Procurement Agency
- The role of the Anti Corruption Office (OA) in public procurement in Argentina
- Ireland – Risk Management Governance within the Government Departments and Office
- Mexico and risk management
- Risk Management Strategy in Public procurement in Tunisia
- The complexity and risk process in Canada
Reviews
- Fostering effective internal control and risk management in IMSS’ procurement activities (extract of Public Procurement Review – IMSS, Mexico)
- Fostering effective risk-based internal control in ISSSTE’s procurement activities (extract of Public Procurement Review – ISSSTE, Mexico)
OECD work on risk management
- Bribery in Public Procurement
- Committing to Effective Whistle-blower Protection
- Integrity in Public Procurement: Good Practice from A to Z
- Managing Conflict of Interest in the Public Service
- OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
- Risk Mapping: Understanding Risks of Fraud and Corruption in the Public Procurement Cycle (in OECD Principles for Integrity in Public Procurement)
Other institutions’ work on risk management
- Checklist of potential risks in the goods and services procurement process, Tasmanian Government (July 2015)
- Integrity Risk Assessment in Public Procurement in Thailand, A priority framework for public procurement integrity reform, UNDP (2015)
- Managing Risk in Procurement Guideline, Government of South Australia, Department of Education and Child Development (2015)
- Risk management, UN Procurement Practitioner’s handbook
- Risk management in the procurement of innovation – Concepts and empirical evidence in the European Union, European Commission (2010)