CREATION OF A RISK-BASED INTERNAL CONTROL ALGORITHM IN CONSTRUCTION ORGANIZATIONS

The article substantiates the need to create a risk-based internal control service in a construction organization, which results from a number of objective and subjective reasons. It was revealed that an effective internal control system in construction is to ensure the interaction of both managerial and productionpersonnel, provide the interconnection of management services with each business unit, and between the employees working together. The conclusions and recommendations of the article are based on the analysis of the current condition of the construction companies in the Republic of Kalmykia and the assessment of functioning internal control systems. The decrease in the economic activity of the construction industry and the identified problems of its development has led to the findings of the necessity to introduce management practices in the administering process of the construction companies aimed at minimizing of risks and threats. Taking into account the studied industrial characteristics of the construction sector, based on the analysis of the organizational and methodological aspects of the internal control, there has been developed an algorithm for constructing a risk-based internal control system in a construction organization, consisting of a number of stages. The proposed algorithm for constructing a risk-based internal control system involves contributing to identifying problems in the management of construction companies using an internal control system in close link with risk management.