Articles

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.

A Review on the Benefits of Continuous Threat Exposure Management in the Banking Industry

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The digital infrastructure of any organization, especially in the banking and financial services sector, is a critical component that underpins its operations. Managing the security of this digital landscape is a formidable challenge, given the ever-evolving threat landscape and the myriad entry points that cyber adversaries can exploit. Continuous threat exposure management offers a proactive approach to identifying, assessing, and managing security threats and vulnerabilities within an organization’s IT infrastructure. This review aims to analyze the various benefits associated with continuous threat exposure management, such as proactive risk identification, threat prioritization, and risk resilience strategies. By examining these key areas, this review provides valuable insights into the importance of effectively managing and mitigating threats for the long-term stability and security of financial institutions.

Cost Optimization and Risk Management Program for the Fuel Supply Network in an Oil & Gas Swamp Operation

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Marine activity is a critical part of an oil & gas company that operates in the swamp area. The company utilizes rigs, barges, and boats to achieve maximum production. Fuel supply for marine fleets is highly essential to ensure smooth operation. Since fuel cost becomes one of the biggest components of operating expenses (OPEX), the stakeholders highly encourage cost optimization programs to ensure business profitability. However, any optimization program shall have a robust risk management program to avoid disturbance in the operation and potential financial losses.

The research aims to select the best fuel supply network in the swamp operation area of an oil & gas company using four criteria (operational expenses, service reliability, value creation, and health safety & environment) based on the literature review and subject matter experts’ analysis. The study will analyze several alternatives using the Analytical Hierarchy Process (AHP) as a decision-making tool and Failure Mode Effect Analysis (FMEA) as the risk management method. The result shows that the hybrid network has the highest rating in AHP with a 33.7% rating and the lowest total risk priority number with 212 points.

Enhancing the Competency Development Program for New Recruits: A Case Study at Internal Audit & Risk Management Function

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The pandemic created unsettling vulnerability as organization accelerated the shift to digital operations. One bright spot is that asset misappropriation, while still a top category of fraud, was down in the last 24 months perhaps due to more employees working remotely, with limited access to company assets. At the same time, remote working increased risks beyond just digital security. Hence, it is important to have effective internal controls to identify and prevent any kind of fraud. The increasing need for recruiting strong internal audit and risk management functions especially in public company is due to several factors, including increased regulatory scrutiny, greater stakeholder demands for transparency and accountability, and the growing complexity of business operations. With the increasing number of public companies, there is a greater need for effective internal controls and risk management systems to ensure financial reporting accuracy, prevent fraud, and meet regulatory requirements. Internal audit and risk management improve governance, decision-making, and identify risks for organizations. Strong functions require adequate manpower, trained personnel, and resources for effective performance. Group Audit and Risk Management (GARM) in one of public company, working on Internal Audit and Risk Management (IARM). To ensure GARM fulfils its responsibilities as a corporate center, they define Key Performance Indicators (KPIs) that are reviewed semi-annually by the Board of Directors (BOD). Unfortunately, one of the KPIs related to advisory and supporting roles, namely supporting the fulfilment of Group IARM manpower requirements, has not been met since 2013. The purpose of this study is to identify the root cause of the decrease in new recruit manpower fulfilment requests from Internal Audit and Risk Management functions in subsidiaries company and enhance the existing competency program in order to increase participation from Internal Audit and Risk Management functions. Using design thinking method and conducting in depth interview author may determine framework to enhance the programs that are more relevant to the competency needs.

Proposed Risk Mitigation for PT ABC to Maximize Income (Hospitality Industry Sector)

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The questions on the research are what are the risks that influence business PT ABC, what are the impacts of these risks, what are the mitigation techniques used to reduce the severity of the impacts. This study aims to identify and examine the risks that influence the business continuity and operations of the company PT ABC, aims to examine the impact of these risks and to investigate risk mitigation in reducing risk. Despite the global economic downturn, Indonesia continues to create increasing number of tourists. As tourists and businesspeople come to visit Indonesia, hotel demand is expected to grow in the next years and decades. Cotah (2019) why hotel investment fails because of not aligned with the right people / team, poor service and maintenance, inflexible management, blasted by new competition, cost overrun to starting any construction or renovation project and poor projection and not understanding location that weakening over time. However, without careful risk management the chance of failing is relatively high. The concept used is the risk management guideline by ISO 31000 which contains the scope, definition, principles, framework and process of risk management. The sources for risk identification research come from interviews and brainstorming. The Analytical Hierarchy Process (AHP) is used to make a risk analysis with the help of Expert Choice version 11 software to analyse the weight of the respondent’s perspective, after obtaining the results of the risk evaluation then create a risk mapping to get the level of risk. Next, the final step is to create risk mitigation and implementation plans to reduce risk. Based on this research, 29 risk factors were found from 4 risk categories, which are Operational, People, Construction and Finance. There are 14 risk factors that are categorized at high risk level, then there are 7 risk factors that are categorized at a moderate risk level, and there are 8 risk factors that are categorized at a low risk level.

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.

Optimizing Risk Mitigation Analysis of Business Development Division (Case Study: Urban Transportation Division at PT Kereta Api Indonesia (Persero)

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The community can use various alternative modes of transportation, and the train is still the choice for most Indonesian people. PT Kereta Api Indonesia (Persero), the object of this research, has 2 main businesses, namely the railroad and the non-railroad businesses. A company’s business processes do not stop until the company benefits from the business it does, but in this highly complex and interconnected world, the risk is everywhere. Risk management is an important discipline for companies, institutions, and society in today’s modern business world. Risk management is carried out based on the ISO 31000:2018 framework. This research will discuss optimizing risk mitigation strategies as a tool for the business development division to provide effectiveness and how to implement these solutions in the real world. Sources in this study came from secondary data such as annual reports, audited financial reports, and project studies in the Urban Transportation Business Development Division of PT Kereta Api Indonesia (Persero), discussions, and interviews with related parties. Some of the tools used in this study are PEST to analyze external companies, McKinsey 7S Framework to analyze external companies, and the Enterprises’ Risk Management method for the risk management process. Managing risk through optimizing risk mitigation can reduce and minimize loss exposure. Based on the risk matrix score results, the company can take risk treatment, whether the risk must be mitigated or accepted. The risk level score from the risk matrix is used to make underwriter decisions in the risk acceptance process at the Business Development Division of PT Kereta Api Indonesia (Persero).

Risk Identification and Risk Prioritization Using Analytical Hierarchy Process (AHP) (Case Study: Human Capital Management, Procurement, and General Affairs of Holding Company PT. ABC)

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Every company will face the fact that there are events that can be predicted or some that cannot be predicted. Companies to deal with these problems need to manage those risk well. According to ISO 31000, the definition of risk management is part of governance and leadership and is the basis for managing the organization at all levels.

Holding company PT. ABC is a non-manufacturing company that is part of one of the largest telecommunications group companies in Indonesia. This company is engaged in strategic investment and holding where the company’s business activities include network development, multimedia services, and investment in other similar companies. This company only has a special unit to manage risk management, the unit was only formed in 2021. Because the formation of risk management in this company is still new, in its implementation it still has shortcomings, which include that they are still lacking in communication with each unit to identify the risks faced and they do not pay enough attention to details such as seeing the score of each of those risks and determining which ones are the most important need to be prioritized.

This research was conducted using Focus Group Discussion (FGD) as a process of identifying possible risks that may occur and Analytical Hierarchy Process (AHP) to obtain risk priorities from each of the same risks. There are 11 risks that occur with 4 risks that have the same score at the High level, and 3 risks that have the same score at the Medium level. Priority weighting using AHP obtains a priority sequence for each risk that has a score at the same level.

Risk Identification in Packaging Material Warehouse in PT. Cedefindo using the House of Risk Method

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The cosmetic industry in Indonesia continues to experience rapid growth, in line with high consumer demand and the widening cosmetic market. In 2021, based on data from the Central Statistics Agency (BPS), cosmetics will grow by 9.61%. One of Indonesia’s well-respected cosmetic manufacturing companies is PT. Cedefindo, which is part of the Martha Tilaar Group. Martha Tilaar Group is one of the local pioneers in the Indonesian beauty industry. There are very large numbers and types of packaging in the warehouse of PT. Cedefindo. Due to the wide range of products, there are a number of risks associated. As a result of redesigns and product discontinuation, a lot of unused packaging material has accumulated in the storage facility. Deadstock and unused packaging materials can disrupt the flow in the warehouse, increasing costs and reducing available storage space. Delays in delivering packaging materials to the production line are a further risk that could be triggered by flow disturbances. Given this potential risk, the company must identify potential risks in every packaging material warehouse activity. Currently, PT. Cedefindo has not examined every action in the packaging material warehouse to identify risks. Risk identification is very important because it will enable the company to develop plans to minimize harmful events before they arise, without proper risk identification, no mitigation strategy can be devised. This research was conducted by identifying warehouse activities, mapping them into (SCOR) and identifying risks using House of Risk Phase 1. The first stage of the House of Risk process is the identification of risk events and risk agents. Next, the severity and occurrence levels are measured, and the aggregate risk priority (ARP) value is calculated to determine which risk agents should be prioritized based on the Pareto diagram. There are 18 risk agents and 15 risk events have been identified as a result of this research, 6 risk agents were given the highest priority based on the Pareto diagram, and 2 risk agents were identified as having a high-risk level and being in the red zone, requiring immediate direct action.

Integrated Management System Based on Risk Process Implementation in Start-Up Company (Superspring) To Maximize the Cost Efficiency

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Risk and opportunity always come like two sides of a coin. The greater the risk, the higher the possibility of return obtained, or even the possibility of failure if it is not anticipated from the start. So the risk must be managed so as to minimize the impact that will be experienced. This research aims to explore the implementation of risk management in start-up company cost efficiency. Start from the business processes identification, risk and opportunity identification, risk analysis, and risk treatment. The risk and opportunity for improvement will be converted into financial conversion or calculated by the financial impact (on value). And finally, the cost comparison of existing costs with the implementation of risk control and implementation of improvement opportunities will be carried out. Using the process approach ISO 9001, risk approach ISO 31000, and FMEA, the company is ideal to implement risk management to make it cost-efficient. Based on the calculation done from the core process (the sales process, the IT process, the technical process, the warehouse and logistic process, and the customer service process) analysis, is shown that all over the risk decrease is about 65.54% (from inherent risk to residual risk) and the cost efficiency is about 315%.