Enterprise Risk Management Disclosure Model in Indonesian Banking Industry 2018-2022

DOI

10.2991/978-2-38476-267-5_13How to use a DOI?

Keywords

Enterprise Risk Management Disclosure; Banking Industry; Indonesia

Abstract

This research aims to empirically examine the factors that can influence Indonesian Banking Enterprise Risk Management Disclosure listed on the IDX for the 2018-2022 period. The background of this research is to prove the effectiveness of regulations regarding how companies report their risk management. The lack of research on ERM Disclosure is interesting to examine. The banking industry’s failure to manage risk management related to cases of embezzlement of money and falsification of customer account data carried out by unscrupulous employees of Bank Maybank Indonesia shows that ERM Disclosure in Indonesia is still weak. Furthermore, the board of commissioners, board of directors, audit committee, ownership concentration, and institutional ownership can influence ERM Disclosure. Based on suggestions from Wijayanti et al [1], this research adds several variables to ERM Disclosure, including an independent board of commissioners, a risk management committee, public ownership, and company size. This quantitative research uses secondary data from annual reports from the official OJK, BI and BEI websites. The research population is banking companies listed on the IDX in 2018-2022. Sampling used purposive sampling. The purposive sampling method was used to obtain 170 observation samples. Data were processed using multiple linear regression analysis with SPSS 25. The dependent variable for this research is ERM Disclosure. Furthermore, the board of commissioners, board of directors, audit committee, ownership concentration, institutional ownership, independent board of commissioners, risk management committee, public ownership, and company size are independent variables. This research proves that the board of commissioners, institutional ownership, independent board of commissioners, and company size positively affect ERM Disclosure. Furthermore, the board of directors, audit committee, ownership concentration, and risk management committee do not affect ERM Disclosure. This research has yet to prove the effect of public ownership on ERM Disclosure and has a low R-Square value, namely 9.3%. Therefore, the low R-Square value proves that other variables can still influence ERM Disclosure. Future research can use other variables apart from the ones used in this research, especially public ownership.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Andwiani Sinarasri
AU  - Aik Nur Pratiwi
AU  - Dyah N. A. Janie
AU  - Alwiyah Alwiyah
PY  - 2024
DA  - 2024/07/18
TI  - Enterprise Risk Management Disclosure Model in Indonesian Banking Industry 2018-2022
BT  - Proceedings of the 2nd Lawang Sewu International Symposium on Humanities and Social Sciences 2023 (LEWIS HUSO 2023)
PB  - Atlantis Press
SP  - 146
EP  - 162
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-267-5_13
DO  - 10.2991/978-2-38476-267-5_13
ID  - Sinarasri2024
ER  -