Comparison of Indonesian Banking Regulation for Integrated Governance, Risk Management, Compliance with Its ISO Counterparts

The research is aiming at obtaining understanding and assurance whether the regulation of Indonesia Financial Services Authority (orOtoritas Jasa Keuangan/OJK) for banking industry on Governance, Risk Management, and Compliance (GRC) in Indonesia are compatible with the requirements and suggested practices of ISO 37000/DIS on Governance, ISO 31000:2018 Risk Management, and ISO 37301: Compliance Management as international standards for Governance, Risk, and Compliance (GRC). The regulatory requirements as set forth by Indonesian FSA to banking industry for integrated GRC have all been compatible with all the elements of ISO 37000, ISO 31000:2018, and ISO 37301. This study utilizes a comparative study method, which is conducted by assessing the similarities and differences between two standards or regulations, or in this study, between Indonesia Financial Services Authority Regulation, or Peraturan Otoritas Jasa Keuangan (POJK) on Governance, Risk Management and Compliance (GRC), with their ISO Standards counterparts. The result is expected to show the degree of fitness of Indonesian banking regulations with these ISO standards. There is only a very small number of studies have been done in the light of calibrating the Indonesian banking regulation in Governance, Risk Management and Compliance (GRC) with their ISO counterparts. Therefore, the result of this paper could be used as generic inputs and considerations for banks which have initiated their integrated GRC practices, and/or just recently commenced, and/or improving their practices more effectively. Whereas the study provides general understanding and assurance of the compatibility, it is not supported yet by empirical evidence of how banks practically exercise the implementation of integrated GRC based on ISO 37000, ISO 31000, and ISO 37301 and how do they conduct calibration efforts to its efficacy. Therefore, it is recommended to conduct such empirical case study in several banks in Indonesia as further study. Further, a field study such as interviews and surveys with Indonesian banking professionals could also be performed to provide additional perspectives on how integrated GRC is implemented in Indonesian banking.

Risk Management of Mice Tourism in XYZ Firm During the Covid-19 Pandemic

This paper explores the implementation of risk management maturity of MICE tourism-sector organisations in XYZ firm which located in Indonesia, precisely in Bandung City, which has a population of 2.510.103 people. The research used a qualitative-descriptive design in the form of a case study at XYZ firm. This study uses primary data and secondary data as supplementary. Primary data was collected by conducting semi-structured interviews with subjects whose roles and functions are relevant to facilitating XYZ firm's strategic initiatives and programs. The findings indicate that XYZ firm was at the initial level in implementing risk management which positively corresponds with its resilience and sustainability—XYZ had a difficult time bouncing back, surviving, and thriving this global pandemic. The results of this research may assist decision-makers on the importance and the dynamics of risk management implementation, particularly for the MICE tourism industry in Indonesia.

Fiscal Resilience Index - A Proposition and Evidence of Emerging Market

Fiscal resilience is essential to maintain economic stability and sustainability. Until now, there are no mutually agreed indicators to show a country's fiscal resilience. This study aims to explore the possibility of forming the index of fiscal resiliency that captures more than one underlying variable that are more comprehensive as opposed to the most current practices that use only one narrow variable. The Principal Component Analysis (PCA) method is applied to build the foundation of the index, whilst the trial is experimentally conducted as a case study of Indonesia as an emerging market in 1995-2020. Using the PCA method produces an index model of fiscal resiliency formed by the variables of government revenue, spending, debt, and macroeconomic conditions. The use of such Fiscal Resilience Index (FRI) as the case of Indonesia in the period 1995-2020 shows a reasonably consistent result which is in line with the underlying condition of the country during such period. It gives a negative figure, which means Indonesia is in a bad fiscal condition due to its budget deficit strategy.

The Interrelation of Information Technology Governance and Enterprise Risk Management to The Organization’s Performance: A Review of Empirical Literature

Given that the role of information technology (IT) governance and enterprise risk management (ERM) within the organization are imperative due to the ever-increasing complexity in the corporate environment, this study aims to uncover the relationship between IT governance and ERM along with the impact of the two frameworks’ interconnectedness on the organization’s performance through empirical literature review. Furthermore, the findings obtained from the empirical review are also used to create a checklist that every organization can apply. The purpose of the created checklist is to help organizations examine the interconnectedness of their IT governance and ERM with respect to their needs and objectives. The findings from the empirical review show that both IT governance and ERM emphasize the importance of strategic and process alignment regarding its implementation, and it is positively significant to the organization’s performance. Hence, the level of effectiveness of one’s IT- and risk-oriented approaches are dictated by how well an organization appropriately aligns its IT governance and ERM structure, mechanism, and process with its objectives, needs, and business operations.

Risk Capability Building Post Covid-19 Through Improving Competency in Risk Management: A Case Study of a Pioneer Bus Rapid Transit Company in Indonesia

The purpose of this study is to understand how a pioneer Bus Rapid Transit (BRT) company in Indonesia strengthens its business resilience when facing uncertainty due to the COVID-19 pandemic. A qualitative approach through distributing questionnaires followed by in-depth interviews and focused group discussion has helped discover that the pioneer BRT company is not fully prepared for the COVID-19 pandemic. The company then decided to strengthen risk management capabilities by increasing risk management competencies that support decision-making in responding to the impact of the COVID-19 pandemic. Risk leaders of the company believe that strengthening risk capabilities can boost the company's resilience in the face of the COVID-19 pandemic and succeeding in the new-normal era later. However, it is recommended that the company apply a business continuity plan/management (BCP/M) as a systematic and comprehensive approach to be more effective in dealing with future resilience and business continuity risks.

How Knowledge Management helped Knowledge Intensive Business Services in Surviving COVID-19 and Creating Resiliency for New Normal: A Case Study of a GRC Training Firm in Indonesia

Since early 2020, COVID-19 pandemic has attacked many business sectors in many countries. In Indonesia, the government reacts to this situation by issuing several regulations, one of which is the large-scale social restrictions (PSBB) regulation. This regulation affects many business sectors, including Knowledge Intensive Business Services (KIBS) sectors. KIBS sectors have been developing quickly, especially in developing countries like Indonesia. Knowledge plays a crucial part for KIBS firms as these firms depend heavily on their workers’ knowledge. In this study, Lembaga Pelatihan Kerja Mitra Kalyana Sejahtera (LPK MKS) is being used as the research object for conducting the research. LPK MKS is a Governance, Risk, and Compliance (GRC) training firm, which included as one of KIBS business sectors. This study uses case study methodology by focusing on obtaining deep understandings about the knowledge management practices in KIBS training firm. The author obtains all the necessary data through in-depth qualitative interviews and secondary data. From the collected and analysed data, LPK MKS has implemented all of the success factors for managing knowledge. While the implementation of leadership and ICT are more notable, the implementation in organisational infrastructure is still not ideal. Nonetheless, the overall implementations of knowledge management help the firm in surviving the COVID-19 pandemic era and creating resiliency to face the new normal condition.

Emotional Intelligence and Risk Leadership on the Effectiveness of ISO 31000 Implementation in Organisation

ISO 31000 indicates that risk management is a science in which competencies are embedded in the individuals. It also emphasises the importance of having proper leadership while demonstrating the commitment towards the risk management implementation. Humans are emotional creatures—we could sometimes be influenced by the force of feelings, rather than rational discussion. This paper describes the dynamics of emotional intelligence and risk leadership in implementing risk management. The research used a qualitative-descriptive design with the verification strategy of case study. It used a non-probability sampling to individuals in the top management position. The findings suggest that without a proper level of emotional intelligence, it is difficult for leaders to cultivate an effective risk culture. These findings may equip decision makers on the interrelationships between emotional intelligence, risk culture, and organisation’s risk management maturity.

Risk Analysis of Microfinance Conversion Based on ISO 31000 PT. Bank BRI Syariah. Tbk Aceh

Aceh government issued Aceh Qanun No. 11 of 2018 about Sharia Financial Institutions, which demands that all financial contracts in Aceh adhere to Sharia principles. This regulation has an impact on the Aceh region's financial business. PT Bank BRI Tbk Aceh has decided to conversion entire financing and funding portfolio to one of its sharia-compliant subsidiaries, PT Bank BRIsyariah Tbk. microfinance portfolio is bigger than other segments. By constructing a risk analysis based on ISO 31000, this study assesses the business risk associated with converting PT Bank BRIsyariah Tbk's microfinance segment in the Aceh region. The results indicate that twenty risks have been identified and evaluated. Risk can be classified into five broad categories: operational, reputational, strategic, credit, and compliance. The risk analysis results indicate that the risk is significant and requires immediate attention. Operational risk is associated with differences in data capacity, servers, the core banking system, and financing applications, whereas strategic risk is associated with differences in financial analysis, guarantee provisions, and regulations.

Retirement and Productivity Age in Indonesia: HRM and Indonesian Law Perspectives

To increase the productivity of their companies, some companies in Indonesia choose to reduce the retirement age of their employees, considering that the productive age group is currently only 15-35 years old. This research wants to find out how the decision is made from the perspective of human resource management and the policy context of the Indonesian government. The collection of data from the literature review used in this research includes journals, books, archives and regulatory policies, which is a way to solve problems by conducting searches on research that has been made previously. This research states that there is no appropriate retirement age for all industries.

Are the Competency-Based Risk Management Certificate Holders Ready for Change? A Descriptive Study of Readiness for Change

Organizations need to make effective changes to address VUCA conditions to survive and be sustainable. The readiness of members of the organization to make changes plays an essential role in ensuring the effectiveness of organizational's change. As a member of an organization, the risk management certificate holder is expected to be capable of ability and psychologically ready for organizational changes in implementing risk management. This study aims to provide empirical evidence regarding the readiness of competency-based risk management certificate holders to make changes, especially to implement more mature risk management in organizations. This study used a quantitative descriptive approach with a survey method. The survey was conducted online using a self-administered questionnaire modified and adapted from the Organizational Readiness for Implementing Change measurement tool. The sample in this study focused on individuals who have a general competency-based risk management certificate—the sampling technique conducted by convenience sampling technique. Regarding data analysis, the researcher used descriptive statistical analysis. This study indicates that 54.5% of competency-based risk management certificate holders have a high level of readiness compared to individuals in their group. It shows that risk management certificate holders have high readiness to make changes to implement risk management in their organization. The findings of the two dimensions also form the variable, namely, change commitment and change efficacy. The results show that the competency-based risk management certificate holders' change commitment impacts their readiness to make changes than their change efficacy. It indicates that the certificate holders have a higher share resolved to pursue the action than their shared belief in the collective capabilities to organize and execute the change in the organizations. From the findings of this study, organizations can develop strategies to further increase the confidence of their shared capabilities in organizations, especially for individual risk management certificate holders, so that the effectiveness of changes made by the organization in implementing risk management will be higher.