Risk Management Approaches in Public Financial Administration

Abstract

This study reviews literature (2018–2022) on the adaptation of Enterprise Risk Management (ERM), especially COSO ERM, in the public sector. While ERM enhances fiscal resilience, transparency, and performance, direct application from the private sector often requires contextual adjustment. Success depends on leadership, risk aware culture, and integration with Financial Management Information Systems, but barriers such as limited capacity, cultural resistance, and fragmented budgeting remain. Emerging risks like cybersecurity and climate change highlight the need to expand fiscal risk frameworks. The study notes gaps in evidence on ERM’s budgetary impact and calls for future research on maturity indicators and cross country comparisons, stressing the importance of tailored ERM approaches for effective governance and accountability.