Accountability and Expertise in Public Sector Risk Management: A Case Study

Authors

  • Tommaso Palermo

    Corresponding author
    • Address for correspondence: Tommaso Palermo, Department of Accounting, London School of Economics and Political Science, Houghton Street, London WC2A 2AE. e-mail: T.Palermo@lse.ac.uk

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    • The author is from the Department of Accounting, London School of Economics and Political Science. He acknowledges the helpful comments from John Ferguson, Martin Messner, Dane Pflueger and the participants in the 2011 NPS seminar (Edinburgh Business School). The financial support of the Management Control Association is also gratefully acknowledged. The author would like to thank the managers who collaborated for their time and patience.


Abstract

This paper examines the adoption of a formal risk management framework in a large public sector organisation. The paper shows the relevance of risk management as an accountability tool, extended by means of disclosure to the scrutiny of distant others. The paper also reveals how the use of risk management is dependent on relational skills, knowledge of business activities and professional experience. Risk management can be seen as both a context-dependent device and as a technique abstracted from a context. The paper discusses how risk officers deal with this complexity, addressing the expectations of multiple organisational actors and external entities.

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