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Adoption of comprehensive risk management in local government

Lasse Olavi Oulasvirta · Ari‐Veikko Anttiroiko

61 citations0/0 files storedLocal Government Studies

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Public Policy and Administration Research Disaster Management and Resilience Public Administration and Political Analysis

Abstract

In the aftermath of large company failures in the early 2000s, there emerged a new wave of efforts to enhance risk management (RM) and control in enterprises. The normative RM model has been promoted widely to all organisations, including public sector organisations. Using survey data, this article describes and explains the diffusion and adoption of RM innovation in local government in Finland. Our survey results support the argument that if comprehensive RM is not obligatory, it is not widely used in local government. Our analysis reveals that financial constraints explain to some extent the existence of comprehensive RM in municipalities, while structural factors such as the size of municipalities do not, even though RM is slightly more advanced in larger rather than smaller local governments. Slow adoption indicates that comprehensive RM as a managerial innovation lacks immediate benefit when assessed against the efforts and costs of its introduction and maintenance.

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References

1995The “new public management” in the 1980s: Variations on a theme 2007Ten Common Misunderstandings, Misconceptions, Persistent Myths and Urban Legends about Likert Scales and Likert Response Formats and their Antidotes 2008Characteristics of Innovation and Innovation Adoption in Public Organizations: Assessing the Role of Managers 2011The Value of Enterprise Risk Management 2005Enterprise risk management: An empirical analysis of factors associated with the extent of implementation 2001The Government of Risk 2009Enterprise risk management and firm performance: A contingency perspective 2003The Determinants of Enterprise Risk Management: Evidence From the Appointment of Chief Risk Officers

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