International Conference KNOWLEDGE-BASED ORGANIZATION Vol. XXIII No 1 2017 RISK MANAGEMENT IN THE DECISION MAKING PROCESS CONCERNING THE USE OF OUTSOURCING SERVICES IN THE BULGARIAN ARMED FORCES Nikolay NICHEV “Vasil Levski“ National Military University, Veliko Tarnovo, Bulgaria
[email protected] Abstract: Outsourcing services in the armed forces are a promising tool for reducing defence spending which use shall be determined by previously made accurate analysis of peacetime and wartime tasks of army structures. The decision to implement such services allows formations of Bulgarian Army to focus on the implementation of specific tasks related to their combat training. Outsourcing is a successful practice which is applied both in the armies of the member states of NATO and in the Bulgarian Army. Using specialized companies to provide certain services in formations provides a reduction in defence spending, access to technology and skills in terms of financial shortage. The aim of this paper is to analyse main outsourcing risks that affect the relationship between the military formation of the Bulgarian army, the structures of the Ministry of Defence of the Republic of Bulgaria and service providers, and to assess those risks. The basic steps for risk management in outsourcing activities are determined on this base. Keywords: outsourcing, risk management, outsourcing risk 1. Introduction It is measured by its impact and the Outsourcing is an effective tool to generate probability of occurrence, and its new revenue, and the risks that may arise, management is the process of identifying, draw our attention to identifying the main analysing, evaluating, monitoring, types of outsourcing risks. This requires the countering and reporting the risks that may focus of current research on studying and affect the achievement of the objectives of evaluating the possibility of the occurrence an organisation and the implementation of of such risks, and the development of a the necessary control activities in order to system for risks management on this basis.