INTERNAL CONTROL AND RISK ASSESSMENT OF THE UNIVERSITIES’ ACTIVITY

The problematic issues of creating a high-quality and reliable information base providing analytical support for management decisions can be solved by the creation of a system of internal control of a university activity. In the paper, it is determined that the internal control system should include the indicators to identify risks allowing giving signals to management about the necessity to respond to the problems occurred to the purpose of their further elimination. The author recommended developing the list of risks with a reasonable probability of their occurrence and potential impact, as well as submitted a form for risk identification in accordance with the needs of stakeholders combined into groups according to the process approach. Taking into account the stakeholders’ requirements and interests, the universities can achieve their greater commitment, trust, and loyalty. The system of control is placed before the challenge to carry out control procedures to monitor the degree of compliance with the stakeholders’ requirements. It is determined, that it is necessary to set control measures for each risk to manage them and guarantee correct and timely implementation of actions. Control measures should include the immediate monitoring of opinions and the stakeholders’ changing requirements. It is found, that within each event, the instructions or procedures should be defined. The author defined the role of internal controllers and auditors of the universities that can help in the identification, the assessment of risks and control procedures, and develop the appropriate techniques. Quantitative Risk Assessment can be performed basing on the economic formulas represented in the study and can be used to calculate the degree of risks in the universities’ activity. Understanding that the risks are primary and the control measures are the reaction tool, the response to the risk should be the basis of the whole management system.