Risk management in public-private partnership through management control

Abstract

Division of risk between a public entity and a private partner is one on the most essential elements of public-private partnership. Improper risk allocation may cause difficulties in implementation of a given undertaking or even prevent its realisation. Proper risk management is significant to avoid such a state and management control is a mechanism facilitating it. The aim of this article is to analyse management control in the scope of risk management in public-private partnership. Therefore, a research problem has been formulated which is to answer the question: is it possible to manage risk in PPP through management control? According to the research hypothesis, management control is an institution which may manage risk in PPP. The article presents management control as a mechanism managing risk in PPP.