Operational system risk in public finances

"The Reader is holding a fairly high level of abstraction in his hands. We encounter concepts in the work such as psychological value function, information wealth, prospect theory, mental accounting, dissipation, autocatalytic nature, unitary state... Few people outside of science understand their meaning. The author, relying on the results of behavioral economics and institutional economics, intends to examine the systemic operational risks contained in the title. With the undisclosed intention of discussing the topic theoretically, he will nevertheless arrive at conclusions that can be used in practice. The book should also be a useful teaching aid. First of all, we must say that this is not the author's first opus on this topic. Moreover, I believe that although it is not impossible, it is not easy to understand the contents of the present work if one is not familiar with the first book, to which the author often refers. (Operational Risk and Loss Avoidance in Public Finance Decisions - Akadémiai Kiadó, 2019). That is, the work is a continuation of the previous monograph. To alleviate the difficulty of the scientific level, our author placed an extremely high emphasis on illustration. The book is dotted with a multitude of colorful figures and graphs. The snapshots of various regions and countries of the world with relatively recent data are very interesting. External influences also play a very important role in our small country regarding the issue under examination. We have little influence on these. But they can affect our internal organization. Of what he has to say, the most important one seems to me to be the emphasis on the importance of subsidiarity: The theoretical level of operational stability would require a significantly higher degree of decentralization, more mature and structured international and national-level decision-making mechanisms in public finance processes. The empirically demonstrable lack of the level of decentralization - its absence - indicates a significantly greater vulnerability than possible of the systems of individual nation states, as well as the global public finance system as a whole." Katalin Botos, Professor Emerita "I do not deny that I was happy and pleased to write lines of recommendation for the book Operational System Risk in Public Finance. Not only did I follow the author's more than two decades of respectable career as a financial auditor, then researcher, and creator, but also because it provides me with many new points of reference and systematic knowledge. The new work is a continuation of the line of thought, on a broadening horizon and with an international outlook, that the author summarized in his book Operational Risk and Loss Avoidance in Public Finance Decisions, published three years ago. I recommend the book to all those who try to understand the operations of public finance every day, who encounter the financial and social risks that permeate our lives in their narrower or broader world. The special value of the volume is that the author was able to convey his individual perspective in his new work, while simultaneously providing a well-structured theoretical background and daily experience. The author's long practical knowledge and the dedicated research standards based on it stand out. The summary of the operational system risks of public finances considers the reader as a fellow thinker, and often leads to identification and sometimes discussion. I respect the author, because in today's world, stricken by pandemics and wars, finding a way out based on common thinking and cooperation has become a special value, we can say, a condition for survival. A good book that helps you navigate is a help to all those who want to understand more about the present and see further into the future. It is therefore worth picking up this book, which is rich in intellectual and professional content, but not easy to read in all its details." Árpád Kovács, university professor