The article "Risks and Internal Control: Keys to State Public Value in Peru" examines the importance of risk management and internal control in Peruvian public entities to strengthen the creation of public value. It emphasizes Law 28716 on Internal Control as a key legal framework that establishes the mandatory implementation of internal control systems in public institutions. These systems allow for the identification, evaluation, and mitigation of risks that could affect the fulfillment of institutional objectives, optimizing decision-making and the efficient use of resources. It also highlights the role of performance audits, conducted by the Comptroller General's Office, as fundamental tools for evaluating the efficiency, transparency, and accountability of public management, ensuring that state resources are used economically, efficiently, and effectively. The article defines public value as citizens' perceptions of the quality and timeliness of state services and applies this concept to five Peruvian ministries (MININTER, MINSA, MINEDU, MTC, and MVCS), identifying the expected public value propositions for each. The results of a survey of 50 professionals reveal widespread dissatisfaction with the quality of public services, management efficiency, transparency, and the institutions' capacity to generate social impact. Respondents perceive those public policies are not adequately addressing citizen needs or generating positive changes in key areas such as education, health, and employment.

A conceptual model for improving public value is proposed, based on three pillars: human talent, risk management, and performance audits. This model seeks to strengthen public institutions, improve the efficient use of resources, and generate a positive impact on society. The article concludes that risk management and performance audits are fundamental to improving the efficiency and transparency of public management, which in turn increases public value and social well-being. Furthermore, the importance of investing in the development of human talent in the public sector is highlighted, as a trained and motivated team is essential for designing and implementing effective public policies. Finally, risk management is linked to the national objectives of the National Strategic Development Plan to 2050, emphasizing that an efficient and transparent public administration is crucial for achieving goals such as social well-being, environmental protection, economic growth, and the consolidation of democracy.

Keywords: risk management, public value, public administration, governance, performance auditing

The efficient and transparent management of public entities is a fundamental pillar for the sustainable development and social welfare of any nation. In the Peruvian context, Law 28716 on Internal Control establishes a crucial legal framework for the implementation of internal control systems to identify, evaluate and mitigate risks that may compromise the fulfillment of institutional objectives. These systems not only seek to prevent fraud and acts of corruption, but also to optimize decision making and the efficient use of available resources, which is essential to improve the quality of public services and generate public value.

Public value, understood as the citizen's perception of the quality and timeliness of the services provided by the State, has become a key indicator to measure the success of public policies and the effectiveness of institutions. In this sense, performance audits, conducted by the Office of the Comptroller General of the Republic, emerge as fundamental tools to evaluate the management of public entities, ensuring that State resources are used economically, efficiently and effectively, and that public services respond adequately to the needs of citizens.

The purpose of this article is to analyze the importance of risk management and performance audits in the creation of public value in Peruvian public entities. Through a theoretical-practical approach, it explores the legal and conceptual bases that support these processes, presents concrete examples of their application in various ministries, and analyzes the results of a survey that reveals citizen perception of the quality of public services. Finally, a conceptual model is proposed to improve public value, based on the strengthening of human talent, risk management and performance audits, in order to contribute to the achievement of the national objectives established in the Strategic Plan for National Development to 2050.¹

Definition of public value

Table 1 presents various definitions of public value, according to the citations given in each case.

Performance audits

According to Article 82 of the Constitution establishes that the Comptroller General's Office, as the highest body of the National Control System, conducts performance audits to evaluate the management of public entities. These audits verify that State resources are used economically, efficiently and effectively, in compliance with legal and regulatory norms. Performance auditing, according to, is a key tool used by the Comptroller General's Office to promote transparency and accountability in public management. By evaluating the performance of entities, it contributes to strengthening the rule of law and improving the quality of services provided. For its part, highlights that performance auditing aims to ensure that public services are of quality and respond adequately to the needs of citizens. This tool allows identifying areas for improvement that have a positive impact on people's lives, strengthening confidence in public institutions. The main purpose of the performance audit, according to, is to ensure that public services generate a positive impact on society, evaluating their quality and relevance, and guiding actions that improve citizen satisfaction.

Figure 1 summarizes the objectives of performance audits in order to provide a better understanding of their relevance. The key points highlighted in relation to these objectives are:

1. Generate a positive impact on people's lives.
2. Verify the use of state resources in an economical, efficient and effective manner.
3. Improving the quality of public services
4. Identify areas of improvement in people's lives.
5. Strengthening confidence in public institutions

Figure 1 Objectives and purposes of performance audits.

Risk management - internal control law for state entities

The efficient and transparent management of public entities is essential for the proper functioning of a State. Within this framework, Law 28716, Law on Internal Control of State Entities, marks a significant advance towards a more effective and accountable public administration. This law provides a firm legal basis for implementing internal control systems that facilitate the identification, evaluation and mitigation of risks that may compromise the fulfillment of institutional objectives.

According to Article 3(b) of Law 28716, risk assessment is a key tool for public entities. By identifying threats and vulnerabilities in advance, these institutions can implement preventive and corrective measures to protect their assets, ensure the reliability of information and comply with their legal responsibilities. The benefits of a sound risk assessment are broad: it improves decision making, optimizes the use of resources, reduces exposure to fraud and corruption, and strengthens public confidence in public institutions. This, in turn, helps entities to generate public value.

According to Law 28716, Article 1 is transcribed below:

Article 1- Object of the Law

The purpose of this Law is to establish the rules to regulate the preparation, approval, implementation, operation, improvement and evaluation of internal control in State entities, in order to safeguard and strengthen the administrative and operational systems with actions and activities of prior, simultaneous and subsequent control, against improper or corrupt acts and practices, tending to the due and transparent achievement of the institutional purposes, objectives and goals.

Similarly, according to the following is a partial transcription of Article 3

Article 3- Internal control system

The internal control system is the set of measures and procedures that ensure that a public entity complies with its objectives. It includes from rules and policies to the attitude of the personnel. Its fundamental pillars are:

1. Control environment: A work environment that fosters integrity and compliance with rules.
2. Risk assessment: Identify and manage potential problems that may affect the entity.

According to Law 28716 and Figure 2, the internal control system (ICS) incorporates a risk assessment process that encompasses two dimensions:

1. Strategic risks: Those that may impede the achievement of institutional objectives and goals in the long term. RISKS MISSION
2. Operational risks: Those that may affect the development of the entity's day-to-day activities and processes. RISKS OPERATIONAL, PROCESSES.

Figure 2 Components of the internal control system, according to Law 28716.

As an application example, the case of the Ministry of the Interior (MININTER) will be analyzed; therefore, Figure 3 shows its vision and mission, according to which the risks that would affect the achievement of its mission (public value) and the risks that would affect the fulfillment of its operational processes would be identified.

Figure 3 MININTER's Vision and Mission.

According to, MININTER's mission:

To protect and promote a safe and stable environment where citizens can exercise their rights and freedoms without restrictions, restoring public order when necessary.

Therefore, according to the detail in Figure 3, the following will be required:

1. Identify risks or adverse situations that may affect the achievement of the "Mission".
2. Identify risks or adverse situations that may affect the achievement or fulfillment of the processes.

This brief example makes evident the causal relationships between the two key concepts of risk and public value that would be tested through performance audits.

Applications of the definition of public value to

According to the definitions developed in Table 1 and the review of the missions of each of the five (05) ministries, Table 2 presents the public value propositions of each entity.

Information resulting from public value survey

A survey of 50 professionals was conducted and the results are shown in Figures 4–10 and Tables 3–8 shows the survey instrument, dimensions and items.

Figure 4 Instrument of application to the Likert survey carried out.

Figure 5 Results of public value survey dimension 1 quality of public services.

Figure 6 Results of the public value survey dimension 2 management efficiency and efficacy.

Figure 7 Results of the public value survey dimension 3 results and social impact.

Figure 8 Results of the public value survey dimension 4 transparency and accountability.

Figure 9 Results of the public value survey dimension 5 satisfaction of citizens' needs.

Figure 10 Results of the public value survey dimension 6 legitimacy and public trust.

The overall conclusions of the survey are as follows:

1. Widespread dissatisfaction with public services:
2. Citizens perceive that public services do not satisfy their needs or meet adequate quality standards.
3. The response capacity of public entities is considered insufficient.
4. Lack of efficiency and effectiveness in public management:
5. There is a negative perception regarding the efficient use of public resources and the administrative capacity of the institutions.
6. Public management is not generating value in terms of meeting basic needs and general welfare.
7. Limited results and social impact:
8. Government policies and programs are not achieving positive results in key areas such as education, health and employment.
9. Public interventions do not effectively contribute to the sustainable development of the country.
10. Lack of transparency and accountability:
11. Public institutions are not perceived as transparent in their management.
12. The government does not effectively communicate the results of its management to citizens.
13. Dissatisfaction with the attention to citizens' needs:
14. Public policies are not addressing the most urgent social problems or the priority needs of citizens.
15. Crisis of legitimacy and confidence in institutions:
16. Citizens do not perceive state regulations as contributing to the general welfare.
17. The management of public entities does not reinforce confidence in state institutions.

In order to provide a visual element, Figure 11 presents the results to the questions of all the dimensions. Note that the categories "Strongly disagree" and "Disagree" represent the highest results by far.

Figure 11 Public value survey results for total responses and dimensions.

Proposed model resulting from the research work

According to the topics developed in this research work, the following key issues have been addressed:

1. Definition of public value
2. Performance audits
3. Risk Management-Internal Control Law for State Entities
4. Applying the definition of public value to ministries

The survey conducted shows very critical results in terms of the objective of this research: "public value"; therefore, the model to improve public value will be proposed.

Table 9 presents concepts related to the need to improve public value in Peru, and their impact on the future development of the nation. There are two key concepts that have been considered in Table 9 Social Progress Index and Future Nation.

As a contribution of the present work and considering the dramatic results of the survey, the proposed model is presented in Figure 12. Figure 12 shows the definitions that would contribute to improve the Social Progress Index (SPI) and its impact on the future nation, which would strengthen the role of public entities in the development of the Nation through the continuous improvement of public value.

Figure 12 Conceptual model applicable to research work.

Human talent

The study by reveals that investing in employee welfare and development in the public sector not only increases efficiency, but also helps keep the best professionals in their positions. However, they caution that it is important to consider diversity and the ability to adapt to change, highlight the importance of human talent in the public sector. Their findings show that investing in people and in creating a good working environment not only improves performance, but also contributes to making public organizations more sustainable over time.

Future nation

According to, the national strategic development plan for 2050 established four national objectives:

1. Ensure the well-being of all and leave no one behind;
2. Protect the environment and the sustainable management of natural resources;
3. Promote economic growth and create quality jobs.
4. Consolidate democracy and the rule of law.

Public structures will thus contribute to the achievement of the challenges contained in each national objective, as long as they are capable of creating the public value expected by Peruvian society.

Public value, corruption and citizen insecurity

Public structures will contribute to the achievement of the challenges contained in each national objective, as long as they are capable of creating the public value expected by Peruvian society.

According to, Figure 13 presents the behavior of corruption and citizen insecurity, according to the years from 2010 to 2020. The behavior of insecurity and corruption are the result of the resulting management of public entities and are corroborated by the results of the survey.

Figure 13 Behavior of corruption and citizen insecurity variables in Peru between 2010 and 2020.

As can be seen, the behavior of insecurity and corruption would represent the inefficient management of MININTER in terms of its inadequate public value. See performance in Figure 13.

The study highlights the importance of efficient and transparent management in public entities, emphasizing Law 28716 on Internal Control as a key legal framework for implementing control systems that facilitate the identification, evaluation and mitigation of risks. These systems are essential to improve the Social Progress Index and generate public value, understood as the citizens' perception of the quality and timeliness of state services. Performance audits, conducted by the Comptroller General's Office, are fundamental instruments for evaluating and optimizing public management. These audits ensure that resources are used economically, efficiently and effectively, promoting transparency and accountability. By evaluating the performance of the entities, we contribute to strengthening the rule of law and improving the quality of the services provided.

The survey shows critical results in several dimensions related to public value. The majority of respondents disagreed that public services meet their needs, reflecting a generalized dissatisfaction with the quality of services and the responsiveness of public entities. In addition, there is a negative perception of the efficiency and effectiveness of public management, as well as the results and social impact of public policies. In terms of transparency and accountability, citizens do not perceive that public institutions are transparent or that the government effectively communicates the results of its management. This reflects a lack of trust in transparency and accountability. The survey also shows that public policies are not meeting citizens' priority needs or addressing the most urgent social problems.

Finally, the article proposes a model that integrates risk management, performance audits and human talent to improve public value. This approach seeks to strengthen public institutions and generate a lasting and positive impact on society, contributing to the achievement of the national objectives defined in the Strategic Plan for National Development to 2050. In summary, the results of the article highlight the need for significant reforms in public management to improve the quality of services, transparency and citizen trust, which in turn will contribute to increasing public value and improving social welfare in Peru.

This article has delved into the relevance of risk management and performance audits as essential tools for the creation of public value in public entities. The Internal Control Law 28716 provides a fundamental legal framework that guides institutions in the implementation of robust internal control systems. These systems not only allow to identify, evaluate and mitigate risks effectively, but are also crucial to optimize decision making and the efficient use of public resources. This proactive risk management is a key component for improving the Social Progress Index (IPS), as it contributes to a more transparent and efficient administration, which translates into a better citizen perception of the quality and timeliness of the services provided by the State. In addition, performance audits, conducted by the Comptroller General's Office, play a fundamental role in evaluating the efficiency and effectiveness of public policies. These audits not only ensure that resources are used optimally, but also identify areas for improvement that can have a positive impact on the quality of public services and citizen satisfaction. Together, risk management and performance audits strengthen trust in public institutions and promote a more transparent and results-oriented state. In summary, the implementation of internal control systems and performance audits are not only technical tools, but also strategic pillars for the creation of public value. These practices not only improve the efficiency and transparency of public management, but also contribute to the social welfare and sustainable development of the country, in line with the national objectives established in the Strategic Plan for National Development to 2050.^1–13

The study concludes that the implementation of internal control systems and performance audits are fundamental to improve public management and the creation of public value in Peruvian state entities. Law 28716 on Internal Control provides a solid legal framework that allows institutions to effectively identify, evaluate and mitigate risks, which not only optimizes the use of public resources, but also strengthens transparency and accountability. These practices are essential to prevent fraud and corruption and to ensure that public services meet the needs of citizens.

Performance audits, conducted by the Comptroller General's Office, emerge as key tools to evaluate the efficiency and effectiveness of public policies. These audits not only verify the proper use of resources, but also identify areas for improvement that have a positive impact on the quality of services and citizen satisfaction. The combination of proactive risk management and rigorous audits contributes to strengthening trust in public institutions and improving the Social Progress Index (SPI), which translates into greater well-being for the population. In addition, the results of the survey conducted reveal widespread dissatisfaction with the quality of public services, management efficiency and transparency of institutions. This underscores the need to strengthen human talent in the public sector, since a trained and motivated team is essential to design and implement effective public policies that respond to the real needs of citizens.

In conclusion, risk management and performance audits are not only technical tools, but also strategic tools for the creation of public value. Their effective implementation allows for a more efficient, transparent and results-oriented administration, which contributes to the achievement of the national objectives established in the Strategic Plan for National Development to 2050.¹ To achieve these goals, it is crucial to continue strengthening institutional capacities, promoting transparency and fostering a culture of accountability in public entities. This is the only way to generate a lasting and positive impact on Peruvian society, improving the quality of life of all its citizens.

None.

The author declares there is no conflict of interest.

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