Risk Management in Public Sector: A Literature Review

Abstract

Public sector today faces a variety of complex and challenging events, and adequate measures are required in order to ensure that the perceived public value is maintained at certain levels. There is a treasure of literature available for the theory of risk and risk management in private sector, mainly with focus in financial and banking sector. Nonetheless, there is a gap in the literature regarding risk management in public sector. There is no well-established theoretical background of strategic risk management in public sector and most of the available literature focus only on the risk estimation and fail to further contribute to how these estimations can be introduced to the decision-making process within public authorities. For this reasons, this paper aims to present a review of the most sound literature on risk management in public sector and a special focus will be given to the identification of current literature gaps and possible future research areas.