Risk Analysis – Opportunity or Threat to Financial Management of Municipalities

Authors

  • Milan Jan Půček The College of Regional Development and Banking Institute – AMBIS, a.s., Lindnerova 575/1, 180 00 Prague, Czech Republic
  • Michal Plaček The College of Regional Development and Banking Institute – AMBIS, a.s., Lindnerova 575/1, 180 00 Prague, Czech Republic

DOI:

https://doi.org/10.61357/sehs.v10i2.49

Keywords:

risk, risk analysis, municipality

Abstract

The topic of the article is the issue of risk regarding municipalities. For the purpose of this article, we understand the risk as a risk of occurrence, which may adversely affect the achievement of the stated objectives. The basic objective of the municipality is to nurture the development of its territory, the quality of life of its inhabitants and the quality of public services provided. The article sets out three goals, such as to evaluate whether a large number of small municipalities in the Czech Republic shall be understood as a risk or as an opportunity. In the Czech Republic, 77% of municipalities have under 1,000 inhabitants, the average population of the municipality in the Czech Republic is 1,695, which is the smallest of the CEE countries. A large number of municipalities up to 1,000 inhabitants can be considered as a risk factor, primarily from the point of view of financial management of municipalities. At the same time, this can be seen as an opportunity for local co-operation, pooled purchases, or alternative public service provision. The second objective was to analyse the ways of providing public services by municipalities. The third objective was to process a case study – the risk analysis of the city of Ústí nad Labem and compare the results with the city of Pardubice.

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Published

2019-12-15

How to Cite

Půček, M. J., & Plaček, M. (2019). Risk Analysis – Opportunity or Threat to Financial Management of Municipalities. Socio-Economic and Humanities Studies, 10(2), 5–22. https://doi.org/10.61357/sehs.v10i2.49

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