Risk Management Solutions in Local Government Financial Management

Abstract

Risk management in financial management in developing countries has emerged as one of the most interesting research topics today. The magnitude of the role of the local government financial management sector has not been accompanied by adequate risk management. Risk management is an important part of decision-makers. Poor risk management in financial management often leads to loss of public trust with the consequences of failure in the administration of good and clean governance. To improve government financial management, risk management is needed that must be managed effectively. The study was conducted using a single case, with a qualitative method approach through interviews, questionnaires, observation, documentation and focus group discussions (FGD). This research, presents empirical data in a case study in one of the local governments in Indonesia about the risk of government financial management, namely public financial management, especially local governments that have not been mapped, the results are expected to be used for future research. The focus of this research is on the use of risk management measures as a strategic skill in managing regional finances. Specifically, the aim is to find out the extent of these risk steps to predict periodic instability periods.