PERAN CORPORATE GOVERNANCE TERHADAP PENERAPAN ENTERPRISE RISK MANAGEMENT: STUDI PERBANDINGAN BANK INDONESIA DAN BANK MALAYSIA

Abstract

Corporate governance is a system, process, set of rules that regulate relationships
between various interested parties in order to achieve an organizational goal.
Therefore, corporate governance is expected to improve the implementation of
enterprise risk management.This study has several objectives: first, to examine the
role of corporate governance in implementing ERM at Indonesia’s Bank. Second, to
examine the role of corporate governance in implementing ERM at Malaysia’s Bank.
Third, to see the difference in the implementation of ERM influenced by corporate
governance in the two countries (Indonesia and Malaysia). Data is obtained from the
annual reports of companies listed on the IDX and KLSE for the period of 2016-
2017. Using SPSS 21 the results of this study show that corporate governance
(independent commissioners, audit committee meetings, risk monitoring committee
funds, and competencies of these committees) has an influence on the
implementation of ERM in Indonesia. While, Malaysia, only independent
commissioners and risk monitoring committee’s meetings influence the
implementation of ERM. The results of this study confirm that the implementation of
ERM in both countries (Indonesia and Malaysia) is different, because the practice of
corporate governance between the two countries is also different.