Abstract :

COSO ERM framework has been widely used for assessing the quality of internal control in many forprofit companies. However, there is still limited application of COSO ERM Framework for non-profit organizations and social enterprises with dual objectives like credit unions. This research evaluates how effective and comprehensive the implementation of internal controls is within a Credit Union in Indonesia, a member-based social enterprise offering financial services to middle-low-income groups. This is a collaborative case study of the researcher and the practitioners of the credit union. Participants shared their perspectives through questionnaire feedback, interviews, and focus group discussions, to examine the control activities within the organization and identify risks that may impact the organization’s goals. The findings suggest a critical demand for forming an operational manual with detailed structures and policies. Furthermore, the sense of loyalty is the key to enhancing members’ participation in various activities within the organization.

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Keywords :

Case study, COSO ERM framework, Credit Union, Financial institution., Indonesia, Internal Control., Risk Assessment., Social Enterprise

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