Risk Management Implementation in Public Sector Organizations-Global Phenomena

Abstract

The research aims to understand the integrated risk management global adoption, especially ISO 31000 in Public Sector Organizations (PSOs). Through desk research and complemented with literature reviews taken from case studies in the G20 Countries, this study is expected to give a helicopter view about the global adoption speed of ISO 31000 as an international standard of risk management by PSOs across the world, and capture the sense of key issues and challenges related to the implementation. The findings contribute to the existing risk management implementation literature as well as a foresight for global risk leaders in PSOs to excel in their own respective risk management initiative either as a single initiative or as a part of their attempt to initiate change management. Since the sample has been purposively limited to G20 countries, consequently it does not reflect other critical factors of issues and challenges which have probably been experienced by non-G20 countries.

Leadership During ERM Transition Implementation in The Public Sector

“…Presidential Regulation (Perpres) of the Republic of Indonesia, number 39 of 2023 concerning MRPN, released in July, was created as a legal framework for implementing ERM based on ISO 31000 by integrating the implementation of integrated risk management in various public sectors in Indonesia (Praja, 2023) The implementation of formal risk management in the public sector in Indonesia was initiated with the implementation of ISO 31000 in 2018 at the Ministry of Finance, after which since 2019, ISO 31000 was implemented at the Corruption Eradication Commission (KPK), Financial Services Authority (OJK), Bank Indonesia (BI), and Financial Audit Agency (BPK) (Alijoyo & Fisabilillah, 2021;Simanungkalit & Tobing, 2022). Problems with implementing ERM in Indonesia, according to Alijoyo (2021), include a need for more professionalism, competence, empathy, and ethics among public service officers. It needs to be an adequate information system, And the Organizational design needs to be more bureaucratic.…”

“…The financial crisis 2008 served as the primary impetus for G20 nations to adopt risk management in 2009. (Alijoyo, 2021).. Since 2009, merely five government agencies have implemented ERM (Alijoyo & Fisabilillah, 2021;Simanungkalit & Tobing, 2022).…”

Sustainable Cities and Communities from Malaysian Local Authorities Perspectives

“…Past literature documents the importance of risk management practices in Malaysian local authorities especially in dealing with the issue of natural disasters. Despite its importance, risk management has still less been implemented due to several challenges such as data availability, technical expertise, and awareness of risk management process [28,29]. Depth studies are needed to address the challenges associated with the risk management process, particularly in the context of SCC as implementing SCC projects does not only involved in dealing with financial risk but also the social and environmental risks.…”

Comparison of Indonesian Banking Regulation for Integrated Governance, Risk Management, Compliance with Its ISO Counterparts

“…Indonesia have been endorsing ISO 31000:2018 as risk management standard used in organizations nationwide, namely SNI ISO 31000 (Standar Nasional Indonesia ISO 31000) in 2011 (Alijoyo and Fisabilillah, 2021). Though, apart from its extensive use in organizations in general, there is still not enough proof on its use as risk management standard in Indonesian banking industry.…”