Risk in the municipal public environment: an exploratory study in small districts of southern Brazil

Abstract

The purpose of this investigation is to apply the classical concepts of risk measurement used in the business environment to the municipal public administrations, aiming to check whether the Fiscal Responsibility Law has had a positive impact on the municipal public agencies and whether they are less exposed to the risks of their environment. In terms of its goals, an exploratory methodology was used; as for the procedures, a bibliographical and documental survey was done at the database of FINBRA-STN; and a quantitative approach was used for the research problem. The investigation covers the municipalities located in Southern Brazil with a population of up to 10,000 inhabitants, and the sample is made up of the municipalities that provided data to FINBRA in the period from 1998 to 2008. The results demonstrate that these municipalities are less exposed to the risks in their environment after the Fiscal Responsibility Law came into force. Thus they are able to give more return to society in the form of public goods and services.

Key words: risk, risk in the municipal public environment, public administration.