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ESR

2.4.1.6. A system of internal control and risk management has been introduced at public sector entities

Problem solving:

2.4.1. The existing governance model at public sector entities is ineffective, resulting in losses and corruption

Deadlines for all measures within ESR

01.03.2023 - 09.12.2024

Implementation of SACP measures within ESR

Total number of measures – 2

1 1

Partially implemented Not started

Implementation of SACP measures within the scope of the Problem by main main performers

Ministry of Economy of Ukraine

50%

Summarized general information on Measures

№	Name of the measure	The main implementer	Co-implementors	Performance indicator	Monitoring results (latest)	Статус
1	2.4.1.6.1 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law proposing to: 1) define the requirements for the implementation of an internal control system at state-owned enterprises, which includes the functions of compliance, risk management, and internal audit (“three lines of defense” model); 2) balance the internal control system with the implementation of anticorruption programs, including corruption risk management; 3) define the powers of the supervisory board to exercise control over the functioning of the internal control system (at enterprises where audit committees have been formed pursuant to the Law of Ukraine On Audit of Financial Statements and Audit Practice), which includes implementing internal anticorruption measures	Ministry of Economy of Ukraine		The draft law has been submitted to the Parliament of Ukraine.	The measure was implemented late and partially	Partially implemented
2	2.4.1.6.2 Implementing an internal control and risk management system at state-owned enterprises	Ministry of Economy of Ukraine		The internal control and risk management system has been implemented at state-owned enterprises.		Not started

Indicators of achievement of ESR

Total number of indicators – 3

Indicators fully achieved – 0

Partially achieved indicators – 0

Indicators with a score of 0% – 3

Summarized general information about Achievement Indicators

№	Indicators	Weight (%)
№	Indicators	Weight (%)	1	A law has taken effect, which: a) defines the requirements for the implementation of an internal control system at state-owned enterprises, which includes the functions of compliance, risk management, and internal audit (“three lines of defense” model) (20 percent); b) balances the internal control system with the implementation of anticorruption programs, including corruption risk management (13 percent); c) defines the powers of the supervisory board to exercise control over the functioning of the internal control system (at enterprises where audit committees have been formed pursuant to the Law of Ukraine On Audit of Financial Statements and Audit Practice), which includes implementing internal anticorruption measures (12 percent).	45%
2	Internal control and risk management systems have been implemented at: a) 100 percent of state-owned enterprises (35 percent); b) 90 percent of state-owned enterprises (28 percent); c) 80 percent of state-owned enterprises (21 percent); d) 70 percent of state-owned enterprises (14 percent); e) 60 percent of state-owned enterprises (7 percent).	35%
3	at least 80 percent of experts on the regulation of the economy and businesses estimate that: a) the implemented internal control system is aligned with the "three lines of defense" model and the OECD Guidelines on Corporate Governance in State-Owned Enterprises (5 percent); b) the correlation between the internal control system and the implementation of anticorruption programs, including corruption risk management, is clearly defined and allows for effective management of corruption risks (5 percent); c) internal control systems of the 15 largest state-owned enterprises are efficient and effective (5 percent); d) supervisory boards of the 15 largest state-owned enterprises exercise effective control over the functioning of the internal control system, in particular the implementation of internal anticorruption measures (5 percent).	20%

ESR