From Compliance to Governance Capability
Evaluating the Effectiveness of Risk Management Policy in the Provincial Government of East Kalimantan
DOI:
https://doi.org/10.21787/jbp.17.2025-2858Keywords:
Risk Management, Governance, Policy Evaluation, Government Internal Oversight System (SPIP), Risk Governance, East Kalimantan ProvinceAbstract
Risk management in local government is increasingly positioned as a strategic instrument for strengthening governance, integrity, and the quality of public decision-making. However, various studies show that increased regulation and maturity of risk management systems do not always translate into substantive improvements in governance and behavioral risk control. This study aims to analyze the effectiveness of risk management policies in the East Kalimantan Provincial Government by examining the suitability of policy design, variations in implementation across regional institutions, and their impact on governance and government integrity. The study uses a qualitative, descriptive, evaluative approach through case studies of four strategic regional institutions. Data was collected through in-depth interviews, limited participant observation, and document analysis. Data was analyzed using an interactive model. The results of this study indicate that the risk management policy in the East Kalimantan Provincial Government is normatively aligned with international standards and has successfully increased the maturity of the internal control system. However, the policy's effectiveness still varies across regional agencies and has not fully strengthened integrity, as reflected in the paradox between increasing system maturity and decreasing corruption control effectiveness. This finding confirms that risk management has not been fully internalized as a culture and strategic decision-making instrument. In conclusion, strengthening risk management requires a shift from an administrative compliance approach to a reflective, integrated policy-learning approach. It is also recommended that policies be more directed at strengthening risk leadership, the role of the Inspectorate as a risk enabler, integrating risk into planning and budgeting, and developing a risk-aware culture, particularly across regional agencies within the East Kalimantan Provincial Government.
Downloads
References
Adusupalli, B. (2024). The Role of Internal Audit in Enhancing Corporate Governance: A Comparative Analysis of Risk Management and Compliance Strategies. MSW Management: Multidisciplinary, Scientific Word and Management Journal, 34(2), 818–831. https://doi.org/10.7492/n6e19h86
Anderson, J. E. (2015). Public Policymaking. Cengage.
Ardianingsih, A., & Payamta, P. (2022). Analysis of the Effectiveness of Risk Based Internal Audit Implementation: A Case Study. Quality - Access to Success, 23(190). https://doi.org/10.47750/QAS/23.190.09
Aziz, N. A. A., Manab, N. A., & Othman, S. N. (2015). Exploring the Perspectives of Corporate Governance and Theories on Sustainability Risk Management (SRM). Asian Economic and Financial Review, 5(10), 1148–1158. https://doi.org/10.18488/journal.aefr/2015.5.10/102.10.1148.1158
Bowen, G. A. (2009). Document Analysis as a Qualitative Research Method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027
Christensen, T., Roness, P., Arne Røvik, K., & Lægreid, P. (2007). Organization Theory and the Public Sector. Routledge. https://doi.org/10.4324/9780415449014
Creswell, J. W., & Poth, C. N. (2017). Qualitative Inquiry and Research Design: Choosing Among Five Approaches. Sage Publications.
Demidenko, E., & McNutt, P. (2010). The Ethics of Enterprise Risk Management as a Key Component of Corporate Governance. International Journal of Social Economics, 37(10), 802–815. https://doi.org/10.1108/03068291011070462
Devaney, L. (2016). Good Governance? Perceptions of Accountability, Transparency and Effectiveness in Irish Food Risk Governance. Food Policy, 62(4), 1–10. https://doi.org/10.1016/j.foodpol.2016.04.003
Erlina, Putri, D. R., & Muda, I. (2019). The Model of Successful Risk Management Implementation in Local Government. International Journal of Civil Engineering and Technology, 10(02), 310–319.
Frost, N. (2021). The Myth of Measurement: Inspection, Audit, Targets and the Public Sector. Sage Publications. https://doi.org/10.4135/9781529760750
Gattie, S. U. (2025). Risk Management and Good Governance Support Organizational Value. Frontiers of Health Services Management, 41(3), 14–18. https://doi.org/10.1097/HAP.0000000000000212
Gericke, R. C. (2018). Corporate Governance and Risk Management in Financial Institutions. Springer International Publishing. https://doi.org/10.1007/978-3-319-67311-0
Halachmi, A. (2005). Governance and Risk Management: Challenges and Public Productivity. International Journal of Public Sector Management, 18(4), 300–317. https://doi.org/10.1108/09513550510599238
Hill, M., & Hupe, P. (2014). Implementing Public Policy: An Introduction to the Study of Operational Governance. Sage Publications.
Hubbard, D. W. (2020). The Failure of Risk Management: Why It’s Broken and How to Fix It. Wiley. https://doi.org/10.1002/9781119521914
Irianto, G., & Amirya, M. (2024). Kendala dan Strategi Implementasi Manajemen Risiko di Pemerintah Daerah Indonesia. Ekuitas: Jurnal Pendidikan Ekonomi, 12(2), 302–312. https://doi.org/10.23887/ekuitas.v12i2.84241
Lincoln, Y. S., Guba, E. G., & Pilotta, J. J. (1985). Naturalistic Inquiry. International Journal of Intercultural Relations, 9(4), 438–439. https://doi.org/10.1016/0147-1767(85)90062-8
Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative Data Analysis: A Methods Sourcebook. Sage Publications.
Mulyono, R. D. A. P. (2020). How Important Risk Management Culture in Local Governments? Journal of Governance and Public Policy, 7(1), 35–40. https://doi.org/10.18196/jgpp71121
Nguyen, Q. K., & Dang, V. C. (2022). The Impact of Risk Governance Structure on Bank Risk Management Effectiveness: Evidence From ASEAN Countries. Heliyon, 8(10), 1–14. https://doi.org/10.1016/j.heliyon.2022.e11192
OECD. (2025). Managing Emerging Critical Risks. OECD Publishing. https://doi.org/10.1787/1f9858ea-en
Oulasvirta, L., & Anttiroiko, A.-V. (2017). Adoption of Comprehensive Risk Management in Local Government. Local Government Studies, 43(3), 451–474. https://doi.org/10.1080/03003930.2017.1294071
Papadaki, M., Gale, A. W., Rimmer, J. R., Kirkham, R. J., Taylor, A., & Brown, M. (2014). Essential Factors that Increase the Effectiveness of Project/Programme Risk Management. Procedia - Social and Behavioral Sciences, 119, 921–930. https://doi.org/10.1016/j.sbspro.2014.03.103
Power, M. (2009). The Risk Management of Nothing. Accounting, Organizations and Society, 34(6–7), 849–855. https://doi.org/10.1016/j.aos.2009.06.001
Praise, I., & Rapina, R. (2022). The Role of Internal Audit, Leadership Effectiveness, and Organizational Culture in Risk Management Effectiveness. European Journal of Management Issues, 30(2), 83–91. https://doi.org/10.15421/192208
Rahmawati, N., Irsyah, & Ningrum, T. A. (2025). Optimalisasi Sistem Pengendalian Inters Pemerintah (SPIP) Melalui Pendekatan Manajemen Risiko. Jurnal Ilmu Manajemen dan Pendidikan, 02(03), 1018–1023. https://jurnal.kopusindo.com/index.php/jimp/article/view/1417
SCCE, & HCCA. (2020). Compliance Risk Management: Applying the COSO ERM Framework.
Vijayakumar, A. N., & Nagaraja, N. (2012). Internal Control Systems: Effectiveness of Internal Audit in Risk Management at Public Sector Enterprises. BVIMR Management Edge, 5(1), 1–8.
Widiyastuti, M., & Winarna, J. (2024). Risk Management, Corruption Control, and Public Monitoring: Do They Improve Government Performance Accountability? International Journal of Economics, Business and Management Research, 08(10), 132–147. https://doi.org/10.51505/IJEBMR.2024.81010
Zammit, C., Grima, S., & Kizilkaya, Y. M. (2021). A Maturity Evaluation of Governance, Risk Management and Compliance (GRC) within the Maltese Public Sector. In Contemporary Issues in Public Sector Accounting and Auditing (pp. 219–255). Emerald Publishing Limited. https://doi.org/10.1108/S1569-375920200000105016
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Author(s)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
