Enterprise Risk Management as a Pathway in Enhancing the Organization’s Performance and Efficacy: A Case Study of An Indonesian Public Service Organization

Proceedings of The 4th International Conference on Research in Business, Management and Economics

Year: 2021

DOI:

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Enterprise Risk Management as a Pathway in Enhancing the Organization’s Performance and Efficacy: A Case Study of An Indonesian Public Service Organization

Dr. Franciskus Antonius Alijoyo

 

ABSTRACT: 

The study aims to analyze the practice of Enterprise Risk Management (ERM) at a large Indonesian public service organization (PSO) and see how it helps them reach their goals and objectives. As the efficacy of ERM is embodied and reflected in risk management maturity level, this study also analyzes the efforts of such PSO to enhance their organization’s performance and efficacy through a higher level of risk management maturity. This study observes the assessment of their current risk management maturity level and captures on what and how some recommendations be identified, explored, and proposed to improve its ERM maturity. By applying qualitative approaches (e.g., interviews, questionnaires, and observation), it is found that the current ERM practices of such PSO are not yet integrated with its organizational governance and management. ERMA ISO 31000 RM3 (Enterprise Risk Management Academy – ISO 31000 Risk Management Maturity Model) can determine that their current ERM maturity level is at the initial stage. This reflects that such PSO still uses a silo-based approach in managing risk, and the application of its risk management is only used to cope with a particular risk.

Upon such a result, some room for improvements to increase risk management maturity is proposed to reach a much higher level within four years. As the study is based on real-case, the result can be used as empirical insights to the academic world and comparative references to the risk management practitioners and enthusiasts.

Keywords: Enterprise risk management, risk management maturity, public service organization (PSO), ERMA ISO 31000 RM3.