Village Government’s Risk Management and Village Fund Administration in Indonesia

Abstract

This study examines the application of risk management in managing village funds, motivated by the village government’s efforts to improve financial management. This research focuses on activities involved in village fund management, including planning, budgeting, administration, reporting, accountability, and supervision. This study analyzes how village governments carry out risk management by considering efficiencies, innovation in public resource management, and anticipating and prioritizing potential threats and opportunities. Data collection involved participant observation, interviews, and analysis of written documents, images, and archives. The result shows that risk management is essential for the management of village funds, and avoiding mistakes in rural communities should be part of their planning and participation. This study highlights the importance of adequate human resources, both in regard to quantity and quality, but it is necessary to pay attention to local strengths by utilizing the nature of cooperation and family skills. Overall, the study emphasizes the need to prioritize risk management in managing village funds to encourage accountability and the efficient use of resources.