Social Construction of Risk Management in Local Government Budgeting

Robinson

2019

Abstract

Implementation of risk management at the local government level, especially in the budgeting process, has not been a serious concern and has not been managed in a structured manner, so that accountability for risk is low. Most previous research on risk management is a concept that is applied to private sector organizations such as banking and capital markets. Several other studies on risk management in the public sector show that the application of these concepts is very important. Almost all of those studies use a positivist paradigm, so there are still few risk management studies that are discussed and analyzed with other paradigms such as interpretive or critical. The data analysis in this study produced three main themes which were the social constructs of budget risk management, namely awareness of potential risks in budgeting; commitment to rules/standards in budgeting; and leadership and culture. Awareness of potential risks in budgeting is the foundation of commitment with rules/standards in budgeting. This means that the commitment of the parties involved in budgeting to rules/standards is largely determined by an awareness of potential risks. Realizing the potential risks in budgeting such as political risk and financial risk will encourage these parties to implement budgeting rules/standards. This is done to anticipate the negative impacts of these risks. While leadership and culture act as a roof that overshadows the implementation of commitments to rules/standards in budgeting. Thus, leadership and culture play a role in guaranteeing and encouraging all parties involved in the budgeting process, to submit and obey the laws and regulations related to budgeting.

Paper Citation

in Harvard Style

Robinson. (2019). Social Construction of Risk Management in Local Government Budgeting. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 39-54. DOI: 10.5220/0009585800002900

in Bibtex Style

@conference{miicema19,
author={Robinson},
title={Social Construction of Risk Management in Local Government Budgeting},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={39-54},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009585800002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - Social Construction of Risk Management in Local Government Budgeting
SN - 978-989-758-582-1
AU - Robinson.
PY - 2019
SP - 39
EP - 54
DO - 10.5220/0009585800002900