Evaluation of Enterprise Risk Management Implementation in Public Institutions Using Multidimensional Maturity Model
Abstract
This study aims to evaluate the implementation of Enterprise Risk Management (ERM) at Institution X using a multidimensional maturity model. A case study approach with data collection through semi-structured interviews and internal document analysis. Content analysis is used to identify and evaluate the maturity level of each attribute according to the morphological matrix of the multidimensional model. The results of the study indicate that the ERM maturity level at Institution X is at Level 3 (Completed) on a scale of five. This level reflects that the organization has processed and continuously managed, identified, and assessed risks and formalized the risk management approach and clearly defined responsibilities. However, the Compliance and Strategy attributes still require more attention. Institution X needs to develop a professional strategy for risk management, improve the compliance management system, and use a multidimensional model for continuous evaluation in the future. These findings can be a basis for Institution X in formulating strategic steps to increase the level of ERM maturity. In addition, this study also contributes to the public sector as a reference in improving the quality of organizational risk governance.
Keywords: Enterprise Risk Management; Multidimensional Model; Maturity Level; Risk Evaluation; Public Institutions
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References
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Suparto, E.R.A., and L. Lukmandono. 2022. Penilaian Maturity Level ERM (Enterprise Risk Management) Berbasis ISO 31000: 2018. Pros. SENIATI 6(3): 478–482.
Velez, S.B. 2022. Operational risk management in banks and idiosyncratic loss theory: A leadership perspective. Emerald Publishing Limited.
Viscelli, T.R., D.R. Hermanson, and M.S. Beasley. 2017. The integration of ERM and strategy: Implications for corporate governance. Account. Horizons 31(2): 69–82.
Wirawan, I.M.S. 2018. Assessing the implementation and maturity level of coso-based enterprise risk management: case study in telco’s international divison in indonesia (TID). Asian J. Manag. Sci. Educ. 7(4): 109–116.
Alijoyo, A., and C.R. Vorst. 2022. Measuring And Improving The Effectiveness Of ISO 31000 Based Erm In State-Controlled PSO-A Case Study Of Toll Road Operators In Indonesia. Int. J. Environ. Sustain. Soc. Sci. 3(1): 65–71.
Antonius Alijoyo, F. 2021. Enterprise risk management: The maturity model for the ISO 31000 adopters. : 18–30. Doi: 10.33422/3rd.bmeconf.2021.04.03.
Bąk, S., and P. Jedynak. 2023. Risk management maturity: A multidimensional model. Taylor & Francis.
Beck da Silva Etges, A.P., J.S. de Souza, F.J. Kliemann Neto, and E.A. Felix. 2019. A proposed enterprise risk management model for health organizations. J. Risk Res. 22(4): 513–531.
Bracci, E., M. Tallaki, G. Gobbo, and L. Papi. 2021. Risk management in the public sector: a structured literature review. Int. J. Public Sect. Manag. 34(2): 205–223.
Bromiley, P., M. Mcshane, A. Nair, and E. Rustambekov. 2015. Enterprise risk management: Review, critique, and research directions. Long Range Plann. 48(4): 265–276.
Büyüközkan, G., and Ö. Ilıcak. 2019. Integrated SWOT analysis with multiple preference relations: Selection of strategic factors for social media. Kybernetes 48(3): 451–470.
Callahan, C., and J. Soileau. 2017. Does enterprise risk management enhance operating performance? Adv. Account. 37: 122–139.
Cano, M.J.J. 2018. Rethinking risk management fundamentals. A conceptual proposal based on uncertainty and complexity.
Cui, X., and J. Gou. 2022. The Construction of Risk Model (PDRC Model) for Collaborative Network Organization. LISS 2021: Proceedings of the 11th International Conference on Logistics, Informatics and Service Sciences. Springer. P. 735–746
Derradji, R., and R. Hamzi. 2024. The convergence of process-risk management and decision-making: an integrated vision. Int. J. Bus. Contin. Risk Manag. 14(3): 305–326.
Dicuonzo, G., F. Donofrio, G. Onorato, and M. Turco. 2021. Enterprise Risk Management: What Opportunities for the Banking Sector? Chang. Financ. Landsc. Financ. Perform. Anal. Real Bank. Sect. Eur.: 171–185.
Didi-Quvane, B., H. Smuts, and M. Matthee. 2019. Critical success factors for dynamic enterprise risk management in responsive organisations: a factor analysis approach. Digital Transformation for a Sustainable Society in the 21st Century: 18th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2019, Trondheim, Norway, September 18–20, 2019, Proceedings 18. Springer. P. 704–717
Eda, M.T.S. 2020. Evaluasi penerapan manajemen risiko dan peran Inspektorat Jenderal:(Studi Kasus Pada Kementrian X).
Hristov, I., R. Camilli, A. Chirico, and A. Mechelli. 2024. The integration between enterprise risk management and performance management system: Managerial analysis and conceptual model to support strategic decision-making process. Prod. Plan. Control 35(8): 842–855.
Javaid, S., and F. Aslam. 2021. The Effect of Enterprise Risk Management on Ameliorating Competitive Advantage: A Cross-Sectional Study of Software Houses in Pakistan. Pertanika J. Soc. Sci. Humanit. 29(4).
Jiao, P., and W. Bu. 2024. The Impact of Organizational Learning on Organizational Resilience in Construction Projects. Buildings 14(4): 975.
Langevoort, D.C. 2021. Compliance as liability risk management. Cambridge Handb. Compliance2: 123–132.
Leng, P., B. Basuki, and R. Setiawan. 2022. THE MATURITY LEVEL OF ENTERPRISE RISK MANAGEMENT IMPLEMENTATION IN MEDIUM-SIZED PRIORITY SECTOR COMPANIES IN EAST JAVA. Int. J. Financ. Invest. Stud. 3(2): 79–93.
Lin, X.G., F. Fernandes, S.M. Duffield, and J. Codyre. 2017. The development of the sector risk profiling methodology for Australian civil aviation activity and its application to the small aeroplane transport sector.
Luca, C.W., and S.A. de Koning. 2018. A solid response to External Stakeholders requires a solid Internal Organisation. SPE International Conference and Exhibition on Health, Safety, Environment, and Sustainability? SPE. P. D031S029R001
Lucht, M.J. 2023. Using enterprise risk management to strengthen organisational resiliency: One institution’s story. J. Bus. Contin. Emer. Plan. 17(1): 61–73.
Marc, M., D.M. Sprčić, and M.M. Žagar. 2018. Is enterprise risk management a value added activity?
Maulana, D.S., S.M. Wardayanti, A.S. Kustono, and W. Wasito. 2024. Analysis Of The Preparation Of Risk-Based Annual Supervision Work Program (Pkpt) At The Banyuwangi Regency Inspectorate. J. Soc. Res. 3(8).
Moeller, R.R. 2007. COSO enterprise risk management: understanding the new integrated ERM framework. John Wiley & Sons.
Praditya, T.A. 2021. Perancangan risk maturity model berdasarkan ISO 31000: 2018 pada perusahaan di Indonesia.
Rana, T., D. Wickramasinghe, and E. Bracci. 2019. New development: Integrating risk management in management control systems—lessons for public sector managers. Public Money Manag. 39(2): 148–151.
Romero, E.D.C.N., and H.S.A. Mayorga. 2022. Challenges of integrating risk management throughout the BPM lifecycle. 2022 Congreso Internacional de Innovación y Tendencias en Ingeniería (CONIITI). IEEE. P. 1–6
Rykhtikova, N. 2018. Main directions of the development of the risk management system in corporations. MATEC Web of Conferences. EDP Sciences. P. 7012
Shad, M.K., F.-W. Lai, C.L. Fatt, J.J. Klemeš, and A. Bokhari. 2019. Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. J. Clean. Prod. 208: 415–425.
Shrivastava, V.K., J. Balasubramanian, A. Katyal, A. Yadav, and S. Yogananthan. 2023. Understanding the significance of risk management in enterprise management dynamics. Multidiscip. Rev. 6.
Siegel, M. 2019. Building Resilience: Preventing, Preparing For, and Responding to Intentional, Unintentional, and Natural Events. Symposium on Homeland Security and Public Safety: Research, Applications and Standards. ASTM International. P. 116–131
Simanjuntak, R., D.S. Priyarsono, and T. Sumarti. 2021. Analisis Tingkat Maturitas Implementasi Manajemen Risiko di IPB University. J. Manaj. Dan Organ. 12(3): 177–188.
Simanungkalit, D., and A.N.L. Tobing. 2022. A Study on the maturity of risk management using the RIMS Risk Maturity Model® approach in investigating activities at law enforcement agencies for corruption. Budapest Int. Res. Critics Institute-Journal 5(2): 15009–15023.
Sinansari, P., S. Hanoum, and I. Rinaldi. 2021. Maturity Level Risk Management in State-Owned Enterprises. 3rd International Conference on Business and Management of Technology (ICONBMT 2021). Atlantis Press. P. 322–327
Suparto, E.R.A., and L. Lukmandono. 2022. Penilaian Maturity Level ERM (Enterprise Risk Management) Berbasis ISO 31000: 2018. Pros. SENIATI 6(3): 478–482.
Velez, S.B. 2022. Operational risk management in banks and idiosyncratic loss theory: A leadership perspective. Emerald Publishing Limited.
Viscelli, T.R., D.R. Hermanson, and M.S. Beasley. 2017. The integration of ERM and strategy: Implications for corporate governance. Account. Horizons 31(2): 69–82.
Wirawan, I.M.S. 2018. Assessing the implementation and maturity level of coso-based enterprise risk management: case study in telco’s international divison in indonesia (TID). Asian J. Manag. Sci. Educ. 7(4): 109–116.
Published
2025-01-16
How to Cite
PERMADI, Egi Agung; HARTANTI, Dwi.
Evaluation of Enterprise Risk Management Implementation in Public Institutions Using Multidimensional Maturity Model.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 4, jan. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/122932>. Date accessed: 30 apr. 2025.
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