THE ANALYSIS OF ENTERPRISE RISK MANAGEMENT (ERM) IMPLEMENTATION IN INDONESIA AND SINGAPORE BANKING INDUSTRY

Abstract

The purpose of this study is to analyse the implementation of Enterprise Risk Management (ERM) in Indonesian and Singaporean banking industry with emphasise on ERM Dimension and ERM Index to analyse its implementation. The sample is 6 (six) local banks with the biggest total assets in 2017 from both Indonesia and Singapore. The result of this study confirms that Internal Environment, Objective Setting, Financial Risk, Compliance Risk, Technology Rik, Economical Risk, Reputational Risk, Risk Response, Control Activities, and Monitoring have significant influence toward ERM Index. Nevertheless, each dimension has different positive and negative influence. This finding shows that ERM Dimension could be used to create an ERM format that fits with banking industry. In addition, this study encourage banks to focus more on ERM Dimension to improve financial performance.