International approaches to digitalisation as a tool for building integrity in the defence sector: an analysis of practices and lessons for implementation in Ukraine

Abstract

Relevance. The research and writing process for this article was aimed at providing a theoretical justification and developing the conceptual framework for the relaunch of the internal control system at the Ministry of Defence of Ukraine, based on the use of modern digital technologies and an analysis of best international practices in integrity building.

Purpose. The purpose of the article is to theoretically substantiate and develop conceptual principles for restarting the internal control system in the Ministry of Defense of Ukraine based on modern digital technologies, taking into account international practices for building integrity in the defense sector.

Methods. The study used a complex of general scientific and special methods, in particular analysis and synthesis, structural-functional method, comparative legal method, institutional analysis method, as well as elements of a process approach for interpreting models of digitalization of control and risk management. The empirical basis was international practices of digital transformation of defense management, regulatory legal acts of Ukraine and analytical materials on the development of internal control and audit.

Results. The article identifies systemic shortcomings in the existing internal control system and analyses best international practices – in particular, the experience of the Advana analytical platform, the process-based approach in accordance with CMU Resolution No. 50 of 17 January 2025, as well as the COSO and ISO 9001 standards. These include the fragmented nature of the regulatory framework, insufficient staff qualifications, the lack of a unified methodology for a risk-based approach, and poor coordination between government bodies. It was also established that, to improve the situation regarding the ineffective detection of financial violations, it is necessary to implement automated risk monitoring and data analytics platforms to bring them into line with relevant international standards.

Conclusions. In addition, the concept of ‘ICS 2.0’ was proposed as a platform for preventive risk management incorporating elements of Big Data, artificial intelligence and distributed ledger technologies. In view of this, it is also proposed to move away from viewing this concept as a mere reporting tool, and instead regard it as a strategic information mechanism for planning, control and ensuring integrity in both wartime and peacetime. This will resolve the issues of reactivity, fragmentation and lack of coordination within the current SCM system at the Ministry of Defence of Ukraine and eliminate the problem of untimely detection of critical deviations in resource flows and management decision-making. Thus, in formulating the recommendations, it was argued that digitalisation in the defence sector is not only a tool for improving efficiency but also a fundamental mechanism for preventing corruption.