THE MATURITY LEVEL OF ENTERPRISE RISK MANAGEMENT IMPLEMENTATION IN MEDIUM-SIZED PRIORITY SECTOR COMPANIES IN EAST JAVA
Abstract
This study aims to measure the maturity level of Enterprise Risk Management in medium-sized priority sector companies in East Java. Studies on the application of ERM were previously focused more on big companies and tended to be carried out abroad and still gave inconsistent results. In addition, the number of studies on previous ERM that addressed the practice of its application on companies has not been that many. There are several studies on ERM conducted in Indonesia, however, the research objective focuses on the financial services industry referring to large companies listed on the Indonesia Stock Exchange. Although several studies have yielded significant results for application in medium-sized companies, they are only centered on construction services companies. There are 16 indicators used to measure the maturity level of ERM implementation in this study that have been adjusted to the characteristics of medium-sized industrial companies in Indonesia. The results of this study indicate that all medium-sized industrial companies in East Java have implemented integrated risk management (ERM) and have reached the optimal maturity level in implementing ERM. The results of the study also found that the automotive and electronics industry sectors are 2 industrial sectors that have the highest level of maturity in implementing ERM. Meanwhile, the lowest maturity level occurred in the food and beverage industry sector.
Downloads
References
Aditya, O., & Naomi, P. (2017). Penerapan Manajemen Risiko Perusahaan dan Nilai Perusahaan di Sektor Konstruksi dan Properti. Esensi: Jurnal Bisnis dan Manajemen, 7(2), 167–180. https://doi.org/10.15408/ess.v7i2.4981
Ali, I. (2003). A Performance Measurement Framework for a Small and Medium Enterprise. The University of Alberta.
Badan Pengawasan Keuangan dan Pembangunan. (2019). Situs Resmi BPKP 2021. Retrieved from http://www.bpkp.go.id/dan/konten/1082/Manajemen-Risiko.bpkp
Badan Pusat Statistik. (2019). Nilai Tambah (Biaya Faktor Produksi) Industri Besar sedang Menurut Subsektor [KBLI 2020] (Milyar Rupiah), 2018-2020. Retrieved from https://www.bps.go.id/indicator/9/739/1/nilai-tambah-biaya-faktor-produksi-industri-besar-sedang-menurut-subsektor-kbli-2009-.html
Badan Pusat Statistik. (2020a). Analisis Hasil Survei Dampak Covid-19 terhadap Pelaku Usaha. Retrieved from https://www.bps.go.id/publication/2020/09/15/9efe2fbda7d674c09ffd0978/analisis-hasil-survei-dampak-covid-19-terhadap-pelaku-usaha.html
Badan Pusat Statistik. (2020b). Proporsi Tenaga Kerja pada Sektor Industri Manufaktur (Persen), 2019-2022. Retrieved from https://www.bps.go.id/indicator/9/1217/1/proporsi-tenaga-kerja-pada-sektor-industri-manufaktur.html
Badan Pusat Statistik PDB indonesia 2017—2021. (2021). Publikasi. Retrieved from https://www.bps.go.id/publication.html?Publikasi%5BtahunJudul%5D=&Publikasi%5BkataKunci%5D=pdb&Publikasi%5BcekJudul%5D=0&yt0=Tampilkan
Badan Pusat Statistik. (2021). [Seri 2010] Distribusi PDRB Terhadap Jumlah PDRB 34 Provinsi Atas Dasar Harga Berlaku Menurut Provinsi (Persen), 2020-2022. Retrieved from https://www.bps.go.id/indicator/52/289/1/-seri-2010-distribusi-pdrb-terhadap-jumlah-pdrb-34-provinsi-atas-dasar-harga-berlaku-menurut-provinsi.html
Bertinetti, G. S., Cavezzali, E., & Gardenal, G. (2013). The Effect of the Enterprise Risk Management Implementation on the Firm Value of European Companies. 24.
COSO. (2004). Enterprise Risk Management—Integrated Framework. 16.
COSO. (2017a). Enterprise Risk Management—Integrating with Strategy and Performance (2017). Retrieved from https://www.coso.org/Documents/COSO-ERM-Presentation-September-2017.pdf
COSO. (2017b). Welcome to COSO. Retrieved from https://www.coso.org/Pages/default.aspx
CRM. (n.d.). Konsep dan Penerapan Key Risk Indicators untuk Perusahaan di Indonesia – CRMS. Retrieved August 12, 2021, from https://crmsindonesia.org/publications/konsep-dan-penerapan-key-risk-indicators-untuk-perusahaan-di-indonesia/
Etikan, I. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5, 1. https://doi.org/10.11648/j.ajtas.20160501.11
Florio, & Leoni. (2017). Enterprise Risk Management and Firm Performance: The Italian Case. Retrieved from https://www.infona.pl/resource/bwmeta1.element.elsevier-7560dc98-b36e-3229-88a4-e897a00ee647
Gordon, L. A., Loeb, M. P., & Tseng, C.-Y. (2009). Enterprise Risk Management and Firm Performance: A Contingency Perspective. Journal of Accounting and Public Policy, 28(4), 301–327. https://doi.org/10.1016/j.jaccpubpol.2009.06.006
Hopkin. (2010). Fundamentals of Risk Management (5th ed.). Retrieved from https://www.ebooks.com/en-gb/book/96297616/fundamentals-of-risk-management/paul-hopkin/
Hoyt, & Liedenberg. (2011). The Value of Enterprise Risk Management—Hoyt—2011—Journal of Risk and Insurance—Wiley Online Library. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1539-6975.2011.01413.x
Hoyt, R. E., & Liebenberg, A. P. (2011). The Value of Enterprise Risk Management. The Journal of Risk and Insurance, 78(4), 795–822.
IRMAPA. (n.d.). Selera Risiko dan Toleransi Risiko—Perspektif SNI ISO 31000:2011 Manajemen Risiko Nasional Indonesia. Indonesia Risk Management Professional Association. Retrieved August 12, 2021, from https://irmapa.org/selera-risiko-dan-toleransi-risiko-perspektif-sni-iso-310002011-manajemen-risiko-nasional-indonesia/
Iswajuni, I., Manasikana, A., & Soetedjo, S. (2018). The Effect of Enterprise Risk Management (ERM) on Firm Value in Manufacturing Companies Listed on the Indonesian Stock Exchange Year 2010-2013. Asian Journal of Accounting Research, 3(2), 224–235. https://doi.org/10.1108/AJAR-06-2018-0006
Kadisperindag. (2021). Kadisperindag: PDRB Jatim 30,6 Persen Ditopang Sektor Industri | Dinas Komunikasi dan Informatika Provinsi Jawa Timur. Retrieved from http://kominfo.jatimprov.go.id/read/umum/kadisperindag- pdrb-jatim-30-6-persen-ditopang-sektor-industri
Kemenperin. (2021). Kemenperin: Pemerintah Optimalkan Peran Industri Pulihkan Ekonomi Nasional. Retrieved from https://www.kemenperin.go.id/artikel/22346/Pemerintah-Optimalkan-Peran-Industri-Pulihkan-Ekonomi-Nasional
Kementerian Perindustrian Republik Indonesia. (2020). Kebijakan Industri Nasional. Retrieved from https://www.kemenperin.go.id/artikel/19/Kebijakan-Industri-Nasional
Kurniawati, K. (2017). Enterprise Risk Management (ERM) serta Peranan Internal Audit dalam Enterprise Risk Management (ERM). Jurnal Akuntansi Bisnis, 3(2), Article 2. https://doi.org/10.30813/jab.v3i2.402
Lam, J. (2014). Enterprise Risk Management: From Incentives to Controls—James Lam—Google Buku. https://books.google.co.id/books/about/Enterprise_Risk_Management.html?id=9E50AgAAQBAJ&redir_esc=y
Liebenberg, A. P., & Hoyt, R. E. (2003). The Determinants of Enterprise Risk Management: Evidence From the Appointment of Chief Risk Officers. Risk Management and Insurance Review, 6(1), 37–52. https://doi.org/10.1111/1098-1616.00019
Lokobal, A., Sumajouw, M. D. J., & Sompie, B. F. (2014). Manajemen Risiko pada Perusahaan Jasa Pelaksana Konstruksi di Propinsi Papua. 10.
Mariani, D. (2018). Pengaruh Enterprise Risk Management Disclosure, Intellectual Capital Disclosure dan Corporate Social Responsibility Disclosure terhadap Nilai Perusahaan dengan Profitabilitas sebagai Variabel Pemoderasi (Studi Empiris pada Perusahaan Sektor Industri Barang Konsumsi di Bursa Efek Indonesia Tahun 2012 – 2016). Intellectual Capital, 7, 20.
Meulbroek, L. (2002). The Promise and Challenge of Integrated Risk Management. Risk Management and Insurance Review, 5(1), 55–66.
Misbah, M. (2017). Asesmen Maturitas Manajemen Risiko Perusahaan Pada Kontraktor Kecil Dan Menengah. Jurnal Teknik Mesin, 6, 87. https://doi.org/10.22441/jtm.v6i2.1195
Muslih, M. (2019). The Benefit of Enterprise Risk Management (ERM) On Firm Performance. Indonesian Management and Accounting Research, 17, 171. https://doi.org/10.25105/imar.v17i2.4949
Nocco, B. W., & Stulz, R. M. (2006). Enterprise Risk Management: Theory and Practice. https://doi.org/10.2139/ssrn.921402
Pamungkas, A. S., & Maryati, S. (2017). Pengaruh Enterprise Risk Management Disclosure, Intellectual Capital Disclosure dan Debt to Aset Ratio Terhadap Nilai Perusahaan. 17.
Sanjaya, C. K., & Linawati, N. (2015). Pengaruh Penerapan Enterprise Risk Management dan Variabel Kontrol Terhadap Nilai Perusahaan di Sektor Keuangan. Finesta, 3(1), 52–57.
Sirait, N. M., & Susanty, A. (n.d.). Analisis Risiko Operasional Berdasarkan Pendekatan Enterprise Risk Management (ERM) pada Perusahaan Pembuatan Kardus di CV Mitra Dunia Palletindo. 10.
Suhaimi, A., (2020). Analisis Manajemen Resiko UMKM Batik Bangkalan Madura di Tengah Pandemi Covid-19. Jurnal Manajemen Risiko, 1(II), 141–148.
Center for Risk Management & Sustainability (CRMS). (2019). Survei Nasional Manajemen Risiko – CRMS. Retrieved from https://crmsindonesia.org/survei-nasional-manajemen-risiko/
Wahyuni, E. D., & Oktavia, I. (2020). Disclosure of Enterprise Risk Management (ERM), Company Value, and Profitability as Moderating Factors. Jurnal Reviu Akuntansi dan Keuangan, 10(2), 208. https://doi.org/10.22219/jrak.v10i2.12934
Waweru, N., & Kisaka, E. (2013). The Effect of Enterprise Risk Management Implementation on the Value of Companies Listed on the Nairobi Stock Exchange. Journal of Applied Finance & Banking, 3(3). https://econpapers.repec.org/article/sptapfiba/v_3a3_3ay_3a2013_3ai_3a3_3af_3a3_5f3_5f7.htm
Zhao, X., Hwang, B.-G., & Low, S. (2013). Developing Fuzzy Enterprise Risk Management Maturity Model for Construction Firms. Journal of Construction Engineering and Management, 139, 1179–1189. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000712
Authors who publish in this journal agree to the following terms:
- Authors retain unrestricted copyright and full publishing rights. The authors grant the Publisher the right of first publication, with the work simultaneously licensed under the terms and conditions of the Creative Commons Attribution 4.0 International License.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and more extraordinary citations of published work.
