Effectiveness Of Risk Management-Based Budget Management In The Bolaang Mongondow Regency Government

Abstract

This study analyzes the effectiveness of risk management-based Regional Budget (APBD) management in the Bolaang Mongondow Regency Government. The study addresses a SIPD paradox: despite four consecutive Unqualified Opinions (WTP) and full implementation of the Regional Government Information System (SIPD) since 2022, the region recorded a relatively high budget surplus (SILPA) of 8.34%, budget absorption in strategic regional agencies of 61–84%, achievement of RPJMD indicators of only 71.22%, and recurring internal oversight findings. A descriptive qualitative case-study approach was employed using the COSO Enterprise Risk Management (ERM) 2017 and ISO 31000:2018 frameworks. Five key informants were selected from budget management and internal oversight functions. Data were collected through in-depth interviews, observation, and document review, and credibility was strengthened through source and technique triangulation. The findings show that five of eight COSO ERM components—control environment, objective setting, risk identification, risk response, and control activities—were effective, while risk assessment, information and communication, and monitoring were not yet effective. SIPD was effective as a preventive control but remained limited as a detective control for substantive waste. The main contribution is the identification of a SIPD paradox in which formal compliance and digital control do not automatically ensure substantive value for money when risk assessment remains manual and fragmented.