Articles

Leveraging Z-Score and Financial Ratio as Early Warning System to Mitigate Supply Chain Disruption at PT Gunung Raja Paksi TBK

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PT Gunung Raja Paksi faces significant challenges in maintaining profitability, which impacts its overall financial health. Key risk factors include the volatility of raw material prices, intense competition within the steel industry, and economic downturns. Fluctuations in raw material prices affect production costs and profit margins. Rising raw material costs can squeeze margins unless passed on to customers, which is challenging in a competitive market. The competitive landscape requires the company to balance competitive pricing with quality, leading to potential price wars and further margin erosion. Additionally, economic downturns reduce demand for steel products, impacting sales volumes and revenues. This study comprises four key components: risk assessment, Z-score model analysis, financial ratio analysis, and risk prevention formulation. The risk assessment, covering both internal and external factors, identifies major risks including supply chain disruptions, financing challenges, weather-related issues, major accidents, and steel market volatility. Analysis using the Z-score model, based on data from the past five years, reveals significant profitability risks for the company. Further examination of financial ratios shows that the company’s profitability ratios are generally below the industry average. Integrating these qualitative and quantitative findings indicates that the company should prioritize addressing supply chain disruption risks. Consequently, an early warning system has been developed, and risk prevention strategies have been established.

Review on the Risk Assessment to Determine Guarantee Fee Standardization (Case Study: PT XYZ, Jakarta)

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This article thoroughly examines the process of creating a guarantee fee structure based on risk assessment, specifically focusing on PT XYZ as a case study. This addresses the necessity for a systematic methodology to ascertain guarantee fees that precisely reflect the related risks while guaranteeing fairness and openness. The report emphasizes the significance of infrastructure development in driving Indonesia’s economic growth and the contribution of state-owned firms such as PT PII. The existing techniques for determining guarantee fees are uneven and need a systematic approach, resulting in protracted negotiations and possible biases. This study seeks to close this divide by presenting a standardized approach derived from thoroughly examining existing literature and evaluating risk factors. These risk factors encompass credit rating, financial stability, loan duration, guarantee scope, project intricacy, past performance, and contingency planning. The methodology’s success is demonstrated through its application to PT XYZ Project A, validating its practicality. The results highlight the framework’s capacity to offer transparent and fair calculations of guarantee fees that precisely represent the risk profiles of projects.

Risk Assessment of Neobank in Indonesia: Case Study of Bank Gembira Indonesia

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This research delves into a comprehensive analysis of the risks encountered by Bank Gembira, a notable neobank in Indonesia. Through combining qualitative and quantitative methodologies, this research study identifies and classifies various types of risk, including credit risk, market risk, liquidity risk, and operational risk. In facilitating the prioritization process, the study makes use of Saaty’s Analytic Hierarchy Process (AHP) as instrument. The study highlights the importance of understanding customer behavior in mitigating risks for neobanks and recommends further research on risk assessment in the neobanking sector. The analysis emphasizes the critical role of credit risk and operational risk for Bank Gembira as a neobank. Through AHP calculations, credit default and cyberattacks are identified as the highest priority risks, underscoring the need for robust risk treatment plans to address these high-level risks effectively. Recommendations are proposed to address these risks, such as enhancing credit scoring for P2P lending partners, improving cybersecurity measures, collaborating with regulators, tracking technology updates, partnering with e-commerce platforms, offering promotional programs, developing digital talent programs, and attracting MSMEs customers. Further research on risk assessment in the neobanking sector is suggested to enhance risk management practices and ensure sustainable growth for neobanks like Bank Gembira.

Assessing an Indonesian Credit Union’s Internal Control Using COSO ERM Framework: A Case Study at Credit Union Kridha Rahardja

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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.

Risk Assessment Analysis for the Merger of Online Platform Companies

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The risks connected to the merger of Company X and Y, a well-known online platform company, are examined in this research, along with suggestions for efficient risk management tactics. The study identifies potential risks like revenue loss, increased debt, compliance with regulations, conflicts between corporate cultures, and data privacy issues. The research suggests strategies to reduce the identified risks and guarantee a successful merger process after thoroughly analyzing these risks. The recommendations cover the creation of strong risk management strategies, efficient coordination and communication between the merging businesses, retention of key personnel, implementation of data privacy measures, proactive risk management of legal and regulatory risks, market monitoring, and ongoing evaluation and updates of risk management plans. By putting these suggestions into practice, Company X and Y can successfully manage risks, reduce potential negative effects, and position itself for long-term success in the phase following the merger. This research makes a contribution to the field of risk management in the context of corporate mergers by offering insightful information for businesses engaged in mergers and acquisitions.

Risk Management Assessment at Primary Health Clinic to Support Quality Improvement

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The rapid increase in population provides opportunities for businesses in the health sector to develop. Health workers began to look for profits and channel self-actualization by opening primary clinics. However, in running the primary clinic business, the owner faces obstacles in managing risk at the Primary Clinic because there are no guidelines for carrying out risk management at the clinic. Based on this premise, the research respondents were primary clinic owners in the city of Bandung. Data collection was carried out using a questionnaire containing the type of clinic, clinic age, turnover per month, average number of patients per day, risk awareness, application of risk management, and statements related to risk management and quality of health services. Data analysis was carried out using descriptive statistical method, and hypothesis testing with multiple linear regression. This hypothesis test proves that risk management can support the improvement of the quality of health services with value of R square 75,9%. Therefore, the purpose of this study is to provide a solution to increase awareness of the clinic owner about risk management by building a risk culture in the Primary Clinic entity. In addition, procedures for carrying out risk assessments are carried out starting from determining the context in the primary clinic, identifying non-medical risks, analyzing, evaluating, to determining mitigation activities. After that, strategic initiatives and monitoring plans are determined because risk management is a long-term and continuous process to support business processes and improve the quality of health services.