The Risk Models and Quantifications of Enterprise Risk Management in Banking Companies in Indonesia

Abstract

It is undeniable that currently there are two major references that are used as mecca for risk management implementation. The two references are the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) This study examines the effect of the company's Performance (ROA), Leverage (DER) and Size on the company's Enterprise Risk Management (ERM). The research sample is 10 banking companies listed on the Indonesia Stock Exchange (IDX) in 2009-2018. Testing the variables using the Eviews statistical test tool. The test results show that Performance and Size partially have a positive and significant effect on Enterprise Risk Management. Meanwhile, the Leverage variable has no significant effect on Enterprise Risk Management.