Risk Awareness on Budgeting: Does it Exist in Public Manager's Perception of Local Government Organization

Abstract

This study aims to reveal the concern of local government managers in Indonesia in dealing with risk, which means observing the attitudes of top-level, middle-level, and lower-level managers in treating risks in the future.The case study was chosen as the method to observe public managers' perceptions from many perspectives.This study finds that local governments are not fully aware of the budget risks.Leaders have not encouraged management to identify and evaluate risks that may interfere with the organization's capability to achieve its strategic goals.Thus, managers have not been able to map out events that can impact the organization's ability to achieve its goals.Public managers in Indonesia do not integrate their managerial capabilities and the social environment of the organization in their budgeting process, which leads to them being unable to ensure explicit consideration of the possible risks that will be faced in the future.

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