Study on Possibility of Applying Risk Management in Village Fund Management in Landak Regency Indonesia

Abstract

This study is focused on study on possibility of applying risk management in village fund management in Indonesia. It is intended to determine the possibility of applying risk management in village fund management, the supporting and inhibiting factors in application of risk management, and strategies in implementation of risk management. Research design used was qualitative with exploratory approach. Data in this study were collected by interviewing the respondents (purposive sample), document study and field observation. Informants in this study are Regent of Landak, Regional Secretary of Landak Regency, Spokesperson of DPRD of Landak Regency, Head of Office of Social Service, Community Empowerment, and Local Government of Landak Regency, Head of Division of Village Financial and Asset Division, Head of Section of Village Government Budget, Chief of Karangan Village, Chief of Serimbu Village, and Chief of Amboyo Inti Village. The result demonstrates that process of implementing risk management in village fund management is limited to risk assessment, consisting of risk identification, risk analysis, and risk measurement, and then to build possibility of applying risk management using scenario planning which result in that it is possible to apply risk management by making regulations and preparing human resources. The supporting factors in applying risk management lie within political development aspect, and technological development aspect encourages the application of risk management. The inhibiting factors derive from individual threat, i.e. habits and fear of the unknown and organizational threat, i.e. Inertia Group. There are two approaches in preparing strategies for implementing risk management, i.e. top-down and bottom-up. And the strategies are making regulations on application of risk management, preparing human resources, providing budget, providing facilities and infrastructures that support the application of risk management.