Navigating Uncertainty in Public-Sector Project Portfolios: Risk Management in Resource-Constrained Environments

Risk management in public-sector project portfolios within developing economies remains an understudied yet critical area, particularly in the context of resource-constrained administrative environments.This study examines the management of risk and uncertainty within the Directorate of Local Administration (DLA) of Ain-Temouchent, Algeria, employing a qualitative case study methodology.Data were collected through semistructured interviews (n=8) and document analysis to explore the systemic barriers and inefficiencies that hinder effective portfolio-level risk management.The findings reveal that fragmented governance structures, a predominantly reactive approach to risk mitigation, and the limited integration of analytical tools contribute to project delays and subjective risk assessments.While these challenges align with broader critiques of public-sector risk management, significant divergences from Enterprise Risk Management (ERM) and adaptive governance frameworks are identified, primarily due to constraints in institutional capacity and resource availability.The necessity of addressing uncertainty at the portfolio level is emphasized, with a call for the adoption of reflective risk practices, proactive decision-making mechanisms, and the implementation of early-stage adaptive strategies to enhance resilience in multi-project public-sector settings.By contextualizing ERM and adaptive governance theories within a resource-limited administrative framework, this study provides a bridge between theoretical advancements and practical applications, offering actionable insights for policymakers and public administrators seeking to improve strategic alignment and project portfolio success in developing economies.