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Peculiarities Of Corruption Risk Management In Economic Activity

Author

Listed:
  • Serhii Vitvitskyi

    (Donetsk State University of Internal Affairs, Kropyvnytskyi, Ukraine)

  • Anton Syzonenko

    (Ministry of Internal Affairs of Ukraine, Ukraine)

  • Tetiana Titochka

    (Donetsk State University of Internal Affairs, Kropyvnytskyi, Ukraine)

Abstract

The purpose of the article is to study the essence of corruption risks that may arise in the process of ensuring the economic security of the State; to consider the main ways of managing such risks as a method of improving the interaction between the economic and legal components of modern Ukrainian society. The scientific discussion on the problem of legal regulation of economic security in Ukraine is presented. The concept of legislative provision of economic security of the state is proposed. This concept is defined as a set of normative legal acts and documents that determine the priorities of the state, aimed at increasing the level of competence and responsibility of public authorities in ensuring safe conditions for the functioning of the national economy of the state (as a component of national security) by identifying the main risks and ways to eliminate them. The scientific approaches to the definition of economic security are characterized. The author's vision of the essence of economic security is presented. This essence is understood as the interaction of public authorities to ensure the conditions necessary to protect the national interests of the subjects of socio-economic relations at all levels in order to ensure stable growth of the economic indicator, meet the economic needs of society and simplify state control over the use of economic resources. The main corruption risks that may arise in the process of ensuring the economic security of the state and the peculiarities of their management are considered. Results. The main corruption risks that may arise in the process of ensuring the economic security of the state are highlighted: risks caused by the discretionary powers of the subjects of ensuring the national economic security of the state; risks caused by the conflict of interests of the subjects of ensuring the national economic security of the state; institutional risks caused by the presence of a number of determinants that contribute to the development of the criminal intent of an official to commit a corruption offense; system-wide risks caused by the general instability of functioning and other shortcomings of the economic sphere of the state. It is established that the main methods of managing corruption risks in economic activity are: elimination of formalism by expanding/improving the boundaries and ways of interaction of economic entities; preventing the existence of discretionary powers of economic entities; provision of individuals and legal entities with procedural guarantees of influence on the development of the state economy; prevention of conflicts of interest of economic entities; regular analysis of possible losses from risk; modeling of potentially corrupt situations in the economic sphere of the state; forecasting the growth of corruption and elimination of its determinants by means of criminal law and criminology.

Suggested Citation

  • Serhii Vitvitskyi & Anton Syzonenko & Tetiana Titochka, 2022. "Peculiarities Of Corruption Risk Management In Economic Activity," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 8(3).
  • Handle: RePEc:bal:journl:2256-0742:2017:8:3:7
    DOI: 10.30525/2256-0742/2022-8-3-42-47
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    More about this item

    Keywords

    corruption; risk; economic security; state administration; national safety; conflict of interests;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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