SOCIAL CONSTRUCTION OF RISK MANAGEMENT IN LOCAL GOVERMENT BUDGETING

Robinson, Robinson (2019) SOCIAL CONSTRUCTION OF RISK MANAGEMENT IN LOCAL GOVERMENT BUDGETING. In: MIICEMA 2019 CONFERENCE PROCEEDINGS.

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Abstract

Implementation of risk management at the local government level, especially in the budgetingprocess, 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 isapplied to private sector organizations such as banking and capital markets. Several other studieson risk management in the public sector show that the application of these concepts is veryimportant. Almost all of those studies use a positivist paradigm, so there are still few riskmanagement studies that are discussed and analyzed with ot her paradigms such asinterpretive or critical. The purpose of this study is to uncover in full and in-depth the practice ofrisk management in budgeting in accordance with the socio-political and cultural context inregional government. Using a qualitative approach with interpretive phenomenology, this studyanalyzes data from in-depth interviews with interpretive phenomenological analysis (IPA)methods. The data analysis in this study produced three main themes which were the socialconstructs of budget risk management, namely awareness of potential risks in budgeting;commitment to rules/standards in budgeting; and leadership and culture. Awareness of potentialrisks in budgeting is the foundation of commitment with rules/standards in budgeting. Thismeans that the commitment of the parties involved in budgeting to rules/standards is largelydetermined by an awareness of potential risks. Realizing the potential risks in budgeting such aspolitical risk and financial risk will encourage these parties to implement budgetingrules/standards. This is done to anticipate the negative impacts of these risks. While leadershipand culture act as a roof that overshadows the implementation of commitments to rules/standardsin budgeting. Thus, leadership and culture play a role in guaranteeing and encouraging all partiesinvolved in the budgeting process, to submit and obey the laws and regulations related tobudgeting.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Economy > Department of Accounting
Depositing User: Septi Septi
Date Deposited: 04 Jun 2020 02:24
Last Modified: 27 Dec 2020 13:24
URI: http://repository.unib.ac.id/id/eprint/21200

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