FINANCIAL RISKS IN PUBLIC FINANCE MANAGEMENT: IDENTIFICATION, ANALYSIS, AND MANAGEMENT STRATEGIES
Abstract
This article examines the identification, analysis, and management of financial risks in public finance management, emphasizing the challenges that governments face in maintaining fiscal stability. Effective public finance management is crucial for a government's ability to meet its social and economic objectives. However, it is often hindered by various types of financial risks, including revenue volatility, expenditure overruns, and debt-related risks. This paper provides a comprehensive framework for identifying these risks, analyzing their potential impacts, and implementing strategies to mitigate them. It reviews approaches such as fiscal buffers, diversification of revenue sources, debt restructuring, and regulatory safeguards that enhance resilience. By exploring case studies and best practices from different countries, the article aims to offer policymakers actionable insights to improve financial risk management and foster long-term fiscal sustainability.
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