Makassar, Indonesia, May 01, 2025/SUSTRACCO/- In today’s complex world, managing risks effectively is crucial for local governments to achieve their goals and serve their communities well. A recent study titled “Risk Awareness on Budgeting: Does it Exist in Public Manager’s Perception of Local Government Organization,” published in the journal Quality – Access to Success by SRAC (Societatea Romana Pentru Asigurarea Calitatii) on May 1, 2025, sheds light on this vital issue. This research explores how public managers in Indonesia perceive and handle risks in budgeting, revealing important insights for improving governance and sustainable development.
The study found that many local government managers lack sufficient awareness of budget-related risks. Top-level leaders often do not encourage their teams to identify and evaluate risks that could hinder the organization’s ability to meet strategic goals. Consequently, risk management is mostly reactive rather than proactive, with managers addressing problems only after they arise. This limited risk awareness affects budgeting processes and decision-making, reducing the effectiveness of public resource management.
Why does this matter for sustainable development? Proper risk management in budgeting can help local governments better plan and allocate resources to address critical issues such as poverty (SDG 1: No Poverty), health and well-being (SDG 3: Good Health and Well-being), quality education (SDG 4: Quality Education), and environmental protection (SDG 14: Life Below Water and SDG 15: Life on Land). Moreover, fostering partnerships (SDG 17: Partnerships for the Goals) between different government levels and stakeholders can enhance risk communication and collaborative problem-solving.
The research emphasizes that building a strong culture of risk awareness requires leadership commitment—from the top down and bottom up. Leaders must actively support risk management practices and create an environment where all staff understand their role in identifying and mitigating risks. This cultural shift can improve budget planning and help local governments adapt to uncertainties, ultimately supporting sustainable development goals.
In summary, this study highlights the urgent need for local governments to integrate risk awareness into budgeting processes. By doing so, they can enhance their resilience, ensure better public service delivery, and contribute to achieving the United Nations Sustainable Development Goals. The findings serve as a valuable guide for policymakers, public managers, and researchers interested in strengthening governance and sustainability in developing countries.
Reference :
10.47750/QAS/26.206.47
Contact:
Prof. Syarifuddin, SE., M.Soc.,SC.,AK
081334348498
syarif1963@yahoo.com
syarifuddin@fe.unhas.ac.id
