The performativity of risk management frameworks and technologies: The translation of uncertainties into pure and impure risks

Abstract

This article examines the long-term dynamics among a best-practice risk management framework, risk management technologies and the translation of uncertainties into risks by using a longitudinal case study of a large mega-project. We show that the framework and technologies through the visual power of inscriptions and the purifying work of risk consultants as experts establish the boundaries of the forms of uncertainties that are accepted and included as risks. We term the accepted and included risks 'pure risks' and the risks excluded after disagreement 'impure risks'. We also show that the construction of impure risks challenges the predictions of the framework causing a false sense of security for the project objectives, and that the continuous readjustment of technologies, in particular, is necessary to ensure the long-term realisation of these predictions. Finally, this article contributes to the literature on performativity by showing how technologies serve as buffers to shield failing economic frameworks against criticism.

The processes of public megaproject cost estimation: The inaccuracy of reference class forecasting

“…In advancing our knowledge of megaproject cost estimation and budgeting processes and to recognize the limitations of having carried out a single case study, the article proposes that additional studies of megaprojects should be carried out across countries and sectors. We know very little about the specific effects of budgeting reforms (Edwards et al., ; Ezzamel et al., ; Muniesa & Linhardt, ) and even less about the dynamics of megaproject budgeting processes—including how budgeting relates to the construction of project risks (Themsen & Skærbæk, ). If we look into such effects and dynamics, we might be able to promote the needed relevance of public sector accounting research to practitioners (Broadbent & Guthrie, ; Vaivio, ; Van Helden & Northcott, ).…”

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

“…The positive implication of this study will direct decisions of internal auditors, the board and management to view the existence of risk management as relevant tools and techniques to address the issues of corporate governance from the perspective of principal stakeholders whose interest is to be protected (Gantz and Philpott 2013). As the discussion involves the public sector, the principal stakeholders who are the taxpayers will stand to benefit if the public entities exercise sound internal control and risk management practices that will secure trust and confidence in public intuitions (Themsen and Skaerbaek 2018). The study reassures stakeholders in the public sector that the existence of internal control elements such as the segregation of duties, review, commitment to ethics, control environment and communications and information are clear examples of good corporate governance indicators needed to be considered to minimize the impact of risk and enhance performance and effectiveness (Asiedu and Deffor 2017).…”

“…In the public sector, risk is considered an occurrence that represents a potential threat to realizing the entity's achievements. A section of management scholars prefer to classify risks solely according to the COSO internal control guide which describes risks as: certain events, activities or perhaps failure to perform some activities which are bound to occur in the near future, and when they do occur the impacts are grievous, however in many instances risk could amount to an opportunity for the organization (Themsen and Skaerbaek 2018). Risks emerged in the public sector the moment individuals began to perceive a high degree of uncertainty with the use of public resources to a certain point, raising doubts about accountability and responsibility (Steinbart et al 2018).…”

Calculating pay in Swedish schools: Accounting, performativity, and misfires

“…We regard IDP as part of the observed accountingization and economization of professional work and organizations (Lapsley, 2007; Miller & Power, 2013; Power & Laughlin, 1992), where accounting has been described as providing a “dominant narrative of everyday doings in organizations” (Miller & Power, 2013). The study aims to contribute to the literature on performativity of accounting (Callon, 1998a; Themsen & Skaerbaek, 2018). The concept of performativity captures the active role of how accounting intervenes and mobilizes actors (Mouritsen, Hansen, & Hansen, 2009; Vosselman, 2013).…”