Managing risk in the public sector – The interaction between vernacular and formal risk management systems

Martin Carlsson-Wall, Kalle Kraus, Anita Meidell, Patrik Tran

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This paper examines the management of risk in a large public sector organization. Accounting research on “new” risk management in the public sector has focused on how formal risk management systems emerge through a top–down approach, primarily driven by external demands. Our study contributes to this body of work by detailing the emergence and operation of vernacular risk management systems, that is, systems self-generated by organizational actors in the context of their work and not officially sanctioned within the organizational hierarchy (cf., Kilfoyle, Richardson & MacDonald, 2013). In this, we theorize how such systems interact with formal risk management systems, thereby also contributing to other disciplines such as crisis management and project management. Drawing on Fischer and Ferlie (2013), we detail how several vernacular systems co-exist and have different interaction modes with the formal risk management system, and consider how these modes of interaction also change over time. Finally, our results highlight the link between the operation of “new” risk management and inter-organizational relationships, demonstrating that such relationships can be an important asset to build on in risk management work.

Original languageEnglish
Pages (from-to)3-19
Number of pages17
JournalFinancial Accountability and Management
Volume35
Issue number1
DOIs
Publication statusPublished - Feb 2019

Keywords

  • case study
  • inter-organizational relationship
  • public sector
  • risk management
  • vernacular accounting

Cite this

@article{8e1d5f5ec01a462f86b4a993a03e75f5,
title = "Managing risk in the public sector – The interaction between vernacular and formal risk management systems",
abstract = "This paper examines the management of risk in a large public sector organization. Accounting research on “new” risk management in the public sector has focused on how formal risk management systems emerge through a top–down approach, primarily driven by external demands. Our study contributes to this body of work by detailing the emergence and operation of vernacular risk management systems, that is, systems self-generated by organizational actors in the context of their work and not officially sanctioned within the organizational hierarchy (cf., Kilfoyle, Richardson & MacDonald, 2013). In this, we theorize how such systems interact with formal risk management systems, thereby also contributing to other disciplines such as crisis management and project management. Drawing on Fischer and Ferlie (2013), we detail how several vernacular systems co-exist and have different interaction modes with the formal risk management system, and consider how these modes of interaction also change over time. Finally, our results highlight the link between the operation of “new” risk management and inter-organizational relationships, demonstrating that such relationships can be an important asset to build on in risk management work.",
keywords = "case study, inter-organizational relationship, public sector, risk management, vernacular accounting",
author = "Martin Carlsson-Wall and Kalle Kraus and Anita Meidell and Patrik Tran",
year = "2019",
month = "2",
doi = "10.1111/faam.12179",
language = "English",
volume = "35",
pages = "3--19",
journal = "Financial Accountability and Management",
issn = "0267-4424",
publisher = "Wiley-Blackwell",
number = "1",

}

Managing risk in the public sector – The interaction between vernacular and formal risk management systems. / Carlsson-Wall, Martin; Kraus, Kalle; Meidell, Anita; Tran, Patrik.

In: Financial Accountability and Management, Vol. 35, No. 1, 02.2019, p. 3-19.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Managing risk in the public sector – The interaction between vernacular and formal risk management systems

AU - Carlsson-Wall, Martin

AU - Kraus, Kalle

AU - Meidell, Anita

AU - Tran, Patrik

PY - 2019/2

Y1 - 2019/2

N2 - This paper examines the management of risk in a large public sector organization. Accounting research on “new” risk management in the public sector has focused on how formal risk management systems emerge through a top–down approach, primarily driven by external demands. Our study contributes to this body of work by detailing the emergence and operation of vernacular risk management systems, that is, systems self-generated by organizational actors in the context of their work and not officially sanctioned within the organizational hierarchy (cf., Kilfoyle, Richardson & MacDonald, 2013). In this, we theorize how such systems interact with formal risk management systems, thereby also contributing to other disciplines such as crisis management and project management. Drawing on Fischer and Ferlie (2013), we detail how several vernacular systems co-exist and have different interaction modes with the formal risk management system, and consider how these modes of interaction also change over time. Finally, our results highlight the link between the operation of “new” risk management and inter-organizational relationships, demonstrating that such relationships can be an important asset to build on in risk management work.

AB - This paper examines the management of risk in a large public sector organization. Accounting research on “new” risk management in the public sector has focused on how formal risk management systems emerge through a top–down approach, primarily driven by external demands. Our study contributes to this body of work by detailing the emergence and operation of vernacular risk management systems, that is, systems self-generated by organizational actors in the context of their work and not officially sanctioned within the organizational hierarchy (cf., Kilfoyle, Richardson & MacDonald, 2013). In this, we theorize how such systems interact with formal risk management systems, thereby also contributing to other disciplines such as crisis management and project management. Drawing on Fischer and Ferlie (2013), we detail how several vernacular systems co-exist and have different interaction modes with the formal risk management system, and consider how these modes of interaction also change over time. Finally, our results highlight the link between the operation of “new” risk management and inter-organizational relationships, demonstrating that such relationships can be an important asset to build on in risk management work.

KW - case study

KW - inter-organizational relationship

KW - public sector

KW - risk management

KW - vernacular accounting

UR - http://www.scopus.com/inward/record.url?scp=85055148231&partnerID=8YFLogxK

U2 - 10.1111/faam.12179

DO - 10.1111/faam.12179

M3 - Article

AN - SCOPUS:85055148231

VL - 35

SP - 3

EP - 19

JO - Financial Accountability and Management

JF - Financial Accountability and Management

SN - 0267-4424

IS - 1

ER -