EFRON Working Paper No. 001 – Functional Non-Recourse Risk (FNRR): Towards a Theory of Lost Signals in Contemporary Governance Systems

This Working Paper introduces the concept of Functional Non-Recourse Risk (FNRR), a theoretical framework developed to analyze the loss of organizational signals within complex governance systems.

The paper argues that contemporary institutions possess increasingly sophisticated mechanisms for processing received information but lack systematic tools for assessing information that is never produced, transmitted, or recorded. This informational blind spot may create significant distortions between operational reality and institutional perception.

To address this issue, the paper develops three original concepts: Functional Non-Recourse Risk (FNRR), Informational Black Hole, and Signal Ambiguity Problem.

The framework is designed as a general theory applicable across public administration, security governance, fundamental rights protection, international organizations, public health systems, and corporate governance.

European border governance is used as an illustrative case study to demonstrate the analytical relevance of the framework.

This publication constitutes the first contribution of the EFRON Observatory research programme and establishes the conceptual foundations for future empirical work dedicated to measuring signal loss within institutional systems.