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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 25 May 2022

Enterprise Risk Management and Bank Performance: A Study of the Indonesian Banking Industry

Lauw Tjun Tjun, Yuswar Z. Basri, Yvonne Augustine

Maranatha Christian University (Indonesia), Trisakti University (Indonesia)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.05.02.417

Pages: 94-104

Keywords: Banks, SEM Based on Covariance, Risk Management, Performance

Abstract

This investigation wants to prove the impact of enterprise risk management on bank performance. The population comes from employees with a working tenure above three years and working in specific departments in the bank in Indonesia. For the unknown population, we utilize snowball sampling based on the excellent relationship with the limited size of the recognized employees. Fortuitously, we can obtain 198 employees as the samples; hence, this study employs the structural equation model with the covariance basis. Moreover, to estimate the path coefficient and its properties and verify the virtuousness of the fit model, the analysis moment structures (AMOS) program is used. Finally, this study concludes that enterprise risk management affects bank performance positively. Finally, this study implies that through the correct risk management, managers can take the opportunity suitable for their strategy and identify the potential risk to be evaluated by the standard process to make the decision correctly.

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