Who is calling the shot? Risk culture experiments on bi-level governments
Transforming Government: People, Process and Policy
ISSN: 1750-6166
Article publication date: 20 June 2022
Issue publication date: 18 October 2022
Abstract
Purpose
This study aims to explore how risk culture – tone at the top (TATT) and informed risk decision (IRD) – can affect the effectiveness of risk management (EORM) in the government.
Design/methodology/approach
The authors experimented on 84 civil servants working in central and local governments in Indonesia, focusing on vital local governments and critical ministries/institutions in central governments.
Findings
TATT and its interaction with IRD do not affect the EORM, while IRD and socialization of risk affect and improve it. A weak TATT, low commitment and ineffective implementation of risk culture to the lower-middle echelon may impair a country’s risk management (RM) practice. IRD with socialization is also the key to improving decision-making and RM.
Originality/value
This paper illuminates the possibility of risk culture in regulating the EORM in the governmental general planning process using the experiment as the research method and provides different facets in the application of risk culture in the government, where the focus is on policy-making, budgeting and planning aspects by involving several important ministries, institutions and strategic local government’s civil servants.
Keywords
Acknowledgements
This research is conducted in partnership with Centre of Excellence – STAR Program of National Government Internal Auditor of Indonesia (NGIA) or in Indonesian language is Badan Pengawas Keuangan dan Pembangunan (BPKP), and thus, this research acknowledged the institution’s contribution toward it. However, NGIA does not, in any way, provide financial support nor does the authors have financial interest and/or nonfinancial interest toward the organization.
Citation
Rosdini, D., Afiah, N.N., Sari, P.Y., Fitrijanti, T., Ritchi, H. and Alfian, A. (2022), "Who is calling the shot? Risk culture experiments on bi-level governments", Transforming Government: People, Process and Policy, Vol. 16 No. 4, pp. 464-477. https://doi.org/10.1108/TG-03-2022-0026
Publisher
:Emerald Publishing Limited
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