Risk management in the public sector: a structured literature review

Abstract

PurposeRisk management (RM) is receiving increasing academic and practitioner attention in the public sector. Despite this, there is a lack of systematization of this body of knowledge. The purpose of this paper is to analyze the state of art by examining the knowledge gaps and defining the emerging themes of RM in the public sector to guide future research agendas.Design/methodology/approachThe authors conducted a structured literature review (SLR). They analyzed 63 papers, by using Scopus database, published from 1990 to 2018. All papers were categorized and analyzed according to 11 criteria defined by the literature.FindingsResults show that there is an increasing attention to RM with a need for more effort to consolidate research knowledge. Findings also established a lack of theorization, with a limited explanatory capacity of most studies. The paper defined four main areas for future developments to increase the body of knowledge. Namely, RM and managerial systems (i.e. MCSs and performance management), integrating RM systems and the building blocks of RM that the authors identify will also play a role in helping the authors to understand the diffusion of RM within public sector organizations.Originality/valueDespite the increasing attention to RM in the public sector, more research is required. Considering RM in public sector risks to be a “black box”, this paper revealed some new insights that could help to analyze better RM in the public sector, to open the black box and to avoid a symbolic use of the RM. In fact, integration with the managerial systems and the strengthening of the building block could help to exploit the potential of RM in the public sector.

Guest editorial

“…In line with this notion, Murr and Carrera (2022) present a case study of how institutional logics affected the adoption and implementation of risk management practices in a governmental entity in a developing country. Murr and Carrera (2022) thus enrich the growing literature on risk management in public sector organizations (Bracci et al, 2021) by confirming the usefulness of the institutional logics perspective for analyzing accounting and control change (Damayanthi and Gooneratne, 2017;Nguyen and Hiebl, 2021). In particular, Murr and Carrera (2021) illustrate how two competing institutional logicsin this case, a traditional logic and a modernization logicconfronted the involved actors with several tensions, which could only be lifted when a Royal Order was issued that mandated that all Saudi Arabian government entities adopt and implement adequate risk management practices.…”

“…These results indicate that to professionalize risk management in the public sector, translating stakeholder pressure into top management support for risk management is crucial. Similar to Murr and Carrera (2022), the study by Schäfer et al (2022) thus adds to the literature on risk management in public sector organizations (Bracci et al, 2021) by highlighting the decisive role of top managers in these companies, such as mayors and agency heads.…”

Effects of COVID-19 on Variations of Taxpayers in Tourism-Reliant Regions: The Case of the Mexican Caribbean

“…Although several scholars have addressed economic topics in the context of the pandemic, specific research about taxation, public finances, fiscal-or tax-related issues is not reported in the academic literature. Indeed, Yang et al (2021b) note that empirical investigations of the impacts on the governmental sector are needed in relation to policy implications to better manage future disasters and crises, given the increasing importance for risk management in the public sector (Bracci et al 2021).…”

Institutional logics and risk management practices in government entities: evidence from Saudi Arabia

“…Research exploring the adoption and implementation of RM practices in the public sector is limited (Bracci et al, 2021). Furthermore, little is known about RM practices in institutional settings where traditional norms, values and belief systems diverge from developed, western economies.…”

“…Second, as far as we know, we are among the first researchers to use the ILP in the context of RM in governmental entities. Bracci et al (2021) argued the necessity for more theorization to advance our understanding of RM in the public sector. In line with Rana et al (2019b, p. 44), we contend that an ILP can be a fruitful framework to explore the interaction of societal logics (macro-level of analysis), organizational actions (meso-level of analysis) and individual behaviors (micro-level of analysis) in understanding the dynamics of adoption and implementation of RM, clarifying how individuals handle competing institutional logics.…”