Obstacles and Strategies for Implementing Risk Management in Indonesian Local Government

Abstract

Currently, risk management in local governments in Indonesia is developing. Each part of the  organization has its own risks. To manage risk, risk management is carried out. The demand to  realize good governance in a bureaucratic environment increasingly strengthens the urgency of  implementing risk management in government agencies. Therefore, this study aims to identify  obstacles and strategies for implementing risk management in local governments in Indonesia  based on a literature review. This study uses a literature study approach with descriptive  analysis. The data sources used are articles and research journals that are relevant to identifying  obstacles and strategies for implementing risk management in local governments in Indonesia.  Research articles are taken from ScienceDirect and Google Scholar from both national and  international databases. Although almost all local governments in Indonesia regulate  regulations on Risk Management Guidelines, where risk management is expected to be  understood and implemented by all regional devices/work units in the local government  environment, there are many obstacles faced. The results show that the obstacles faced include  a lack of understanding and awareness of risk management; limited resources; misalignment  of regulations and policies; inadequate data; resistance to change; and lack of support from  leaders. Meanwhile, strategies to overcome these obstacles include the need for training and  education and building a risk management culture; adequate allocation of resources;  harmonization of regulations and policies; data optimization; cultural development; and  increased support from leaders.