Risk management in prison companies – Establishing the internal control system for penitentiary companies in the light of the new legislation

Abstract

State-owned enterprises must comply with the new requirements for their internal control system in accordance with Government Decree No. 339/2019. (XII. 23.). The provisions, in force from 1 January 2021, are intended to promote the orderly operation of state-owned enterprises and to strengthen public trust in the efficient operation. Among the state-owned enterprises, the companies of the prison service are in a very specific position, as in their case the most efficient employment of the detainees and the establishment of a partially self-sustaining penitentiaries are also important expectations. The peculiarity of these prison companies is that their activities are managed not only by the Ministry of Interior and the Prison Service Headquarters, but also by an economic organization called BV Holding Ltd. In our study, we seek the answer to the various multicompliance requirements for the operation of the prison companies in the new regulatory environment and provide practical recommendations on implementing risk management tools in order to ensure not only legal compliance, but a more effective operation, too.