The Value of Public Sector Risk Management: An Empirical Assessment of Ghana

Abstract

This study investigates risk management practices in public entities in the Ghana. We relied on the popular framework designed by the Committee of Sponsoring Organizations of the Treadway Commission-COSO, to advocate for possible ways to minimize the occurrence and effects of risk in public organizations. The internal control elements used include: control environment, commitment to ethics, segregation of duties, review and information and communication. These constitute the explanatory variables used in performing multivariate data analysis to determine the dimensionality of the data set and possible outcomes. The exploratory research followed a quantitative approach using the survey method and a structured equation model. We established that, due to globalization and increases in the scale of operations, it is practically impossible for management through the help of auditors and those in charge of governance to validate the entire operations of the public sector to ensure strict compliance to internal control principles, in order to minimize the detrimental impacts of risk. However, an alternative sustainability depends on the prominence of quality financial reporting, compliance, commitment to ethical values and consistency in pursuit of the strategic and operational objectives based on good corporate governance. On the other hand, the implications of risks should be embedded in the minds of public servants as part of the organizational culture that will complement existing tools and techniques of internal control.

Determinants of Board Contribution to Internal Controls and Good Governance: Evidence of Rural Banks in Ghana

“…This is because, technically the board's role is different from that of management and the authority is clearly defined. For example whereas management is focusing on internal control systems, the board with its sub-committees such as the audit committee may be engaged in analyzing risk, and governance and strategic issues (Kong, Lartey, Bah, & Biswas, 2018). This is where this current research attempts to bridge the gap between the board and effectiveness of internal control by looking at those tools and institutional variables that the board can rely on to examine and influence and improve internal control without necessarily interfering with management role.…”

Persepsi Risiko Pada Pemerintahan Desa: Sebuah Tinjauan Dari Perspektif Perangkat Desa Di Kabupaten Bandung

“…Bagaimana masalah risiko masuk ke dalam domain sektor publik, dan bagaimana pemerintah memandangnya, memperhitungkannya, dan mengontekstualisasikannya telah diulas oleh para penulis sebelumnya (Kong et al, 2018;Oulasvirta & Anttiroiko, 2017).…”

Corporate Governance Issues in the Public Sector: Board Perspective and Peculiarities

“…Over the years the Organization for Economic Co-operation and Development -OECD, has been engaging governments to initiate policies of good governance centered on integrity, accountable governance and transparency in the public sector (Organisation for Economic Co-operation and Development, 2004). Although the competitive drivers between the private and public sector are different, both sectors share almost similar principles of governance, also referred to as the board characteristics (Kong et al, 2018). In addition, the constitution mandates public organizations to emphasize the government's commitment to integrity and ethical practices as key components of good governance which shapes the corporate behavior.…”