Abstract:
The purpose of this study is to analyse the influence of Enterprise Risk Management
(ERM) Implementation towards Bank Profitability Performance in banking
industry. Continuing the study of Liem in 2018 in Indonesia, this study focus is in
Australia as its comparison. Since Australia is the neighbour country of Indonesia,
Australia, as a developed country could act as a great comparison subject for
Indonesia, a developing country. This study emphasises on ERM Index and ERM
Dimension to analyse the ERM implementation and Net Interest Margin and Return
on Average to analyse the Bank Profitability Performance. This study main research
question: “Is there any influence of ERM Implementation towards Bank
Profitability Performance?” The analysis of this study uses Panel Data
Generalized Least Squares (GLS) Regression by STATA M-64. The result of this
study confirms that ERM Index has positive influence toward Bank Profitability
Performance. However, this study still unable to confirms the influence of ERM
Dimension toward Bank Profitability Performance due to inconsistency results.
Therefore, this study encourage future researcher to conduct a deeper research
regarding the influence of ERM Implementation towards Bank Profitability
Performance with a wider range of sample.
