Enterprise risk management

This article presents a new avenue for healthcare risk managers to drive improvement for patients and healthcare organizations alike: working to reduce avoidable patient suffering. It briefly describes the problem of patient suffering, differentiates between avoidable and unavoidable suffering, and suggests that common risk management tools can be used to tackle the problem. It also highlights a success story from one large health system.

Service enterprises have traditionally used organizational models from the manufacturing and industrial sectors, incorporating ideas such as hierarchy, task repetition, and standardization of procedures. However, these disciplined production systems tend to use humans more than machines in the production of services, which we posit may lead to significant organizational problems. Consequently, we conducted an ethnographic study on the notion of “human risks” in service companies from the Geneva region, which is known primarily for its banking sector. Our study is based on transcripts from more than sixty semi-directed interviews conducted over the last two years. Our findings and analyses indicate that service companies are indeed quite “industrialized,” and that “process normalization,” which is intended to mitigate operational risks in service industries, is actually at the core of significant organizational risks.

This study empirically and comparatively analyses the insurance companies and commercials banks' investment portfolios and their contributions to economic growth in Nigeria. The study covers the period from 1996 to 2011. The secondary data collected for the study were presented in tables and graphs. A multiple linear regression method was adopted to test the research hypotheses. An ex-post facto research design was adopted in the study. The findings were that there is a positive but no significant relationship between government securities, stock of bond, real estate and mortgage, policy and other loans, cash deposits, bills of exchange of insurance companies and economic growth in Nigeria. This implies that investment portfolios of insurance companies do not contribute significantly to economic growth in Nigeria within the period under study. Also, there is a significant relationship between ordinary shares, preference shares, debentures, subsidiaries, other investments, total investments of commercial banks and economic growth in Nigeria. This implies that investment portfolios of commercial banks do contribute significantly to economic growth in Nigeria within the period under study. Recommendations were that insurance companies in Nigeria should increase their investments on government securities, real estate and mortgage, policy and other loans, as well as cash at hand and deposits for more feasible contribution to the economic growth in Nigeria. Also, commercial banks in Nigeria should also channel their investment efforts on other subsidiaries and debentures for more realistic contribution to the economic growth in Nigeria among others.

Enterprise Risk Management (ERM) is a process used by firms to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a proactive framework for risk management, which typically involves identifying particular events relevant to the organization's objectives, assessing them and magnitude of impact, determining a response strategy, and monitoring progress. This research measures the awareness of Bahrain financial sector of ERM and if companies maintain an effective ERM framework. The results show success since all companies are aware of ERM and have an effective ERM framework in place.

The costly, time-consuming and complicated process of Enterprise Risk Management (ERM) can be improved in many companies and made less tedious for managers by using reasonable data and templates obtained from the peer group entities. The models used to calculate Economic Capital (EC) often underestimate its value because they do not consider decision maker perception about risk, which are absorbed by the enterprise and transferred outside of the enterprise. We assumed that mangers as the decision makers have appropriate business understanding and they can provide substantial information about risk characteristics regarding all business processes. Therefore we are focused, in this paper, on collecting data from the managers across the different businesses to derive the appropriate knowledge about the risky events, importance of particular type of risks, relationship between the risk outcomes and the level of risk control in a particular industry. We conclude that the collected data h...

Innovation and risk are inseparable. In fact, literature on innovation management often recommends that innovation-oriented firms must actively monitor, evaluate, analyze and treat future events in order to mitigate risks whenever possible. This approach is particularly important in emergent economies characterized by unstructured national innovation systems and constant economic and market instability. However, there has been no systematic effort to identify and categorize risks that potentially impact businesses based on innovation. Thus, we propose an interpretative framework of risk events with potential financial impact in innovation-oriented firms constructed and tested by means of a mixed studies review. The risk events were identified through a comprehensive systematic search and review of the published literature on risk and innovation. From the 115 works that were analyzed, it was possible to identify nine categories of risk events frequently associated with innovation-oriented businesses that may generate financial impacts. The proposed interpretative framework was tested in an empirical study with 13 innovation-oriented firms located in six Brazilian technological parks. Results from the empirical study suggest that managers found the proposed interpretative framework complete and comprehensive. Moreover, the empirical study signaled which risk events are more relevant for the Brazilian context. The proposed framework is a first necessary step for future development of ERM models applicable in innovation-intensive contexts.

Solvency Assessment and Management (SAM) is a risk-based regulatory regime for the prudential regulation of the South African insurance industry, with its final implementation on 1 January 2016. Insurers are therefore focused on improving their risk management processes, and integrating the new regulatory requirements into these processes. Enterprise Risk Management (ERM) has evolved as a risk management process. The Own Risk and Solvency Assessment (ORSA) is one of the key elements of ERM and is becoming a South African regulatory requirement for insurance undertakings. This paper aims to find the relationship between organisational culture and the principles of ERM, as an insurance company's organisational culture may affect the ease of implementation and maturing of ERM processes. A framework defining the typology of organisational cultures is discussed and the principles of ERM are presented in this paper. The paper presents a global view of this relationship since this research is the first of its kind. Through a questionnaire sent out to the South African insurers this paper presents an initial exploratory investigation into the industry's organisational culture and ERM. The paper also identifies a number of areas of further research in the subject of organisational culture in South African insurance companies. It is found that the characteristics of a communal culture is the overall culture of organisations within the South African insurance industry and it is also the culture that best helps the ease of implementation of ERM in South African insurance companies.

—At a time of economic uncertainty, the most successful and effective organizations offer the market predictability. In order to achieve predictability in project outturn, risk management is given equal importance alongside cost and schedule control. In turn, improved risk control and growing levels of risk intelligence are best facilitated by ongoing measurement. In this paper, the measurement of risk will be discussed (in a project or construction and engineering context) to help reinforce process integrity. Methods for the effective capture and sharing of risk data will be reviewed in conjunction with critical success factors, common key risk indicators (KRIs) and other widely held risk metrics and benchmarks. In addition, the benefit of periodic risk-based project audits will be explored. After establishing a link between risk and knowledge, the merits of a central risk management library or knowledge base for professional risk management practitioners will be considered with the goal of improving risk management implementation effectiveness at the organizational and industry level.

Implementing a properly functioning enterprise risk management (ERM) programme has become increasingly important for insurance companies. Unlike traditional risk management where individual risks are managed in separate silos, ERM is based on the concept of managing all relevant risks in an integrated, holistic fashion. ERM has also been growing in importance as a result of increased attention on risk management in the context of corporate governance. A recent report by The Geneva Association identified strengthening "risk management practices" as one of three key measures that "aim to strengthen financial stability". Despite the heightened interest in ERM by insurance managers and actuaries, there is only limited empirical evidence on how insurance companies actually implement the ERM approach. The goal of our research is to examine the implementation of the ERM components by insurers. Therefore, we surveyed all German property-liability insurance companies with premiums written in excess of 40 million euros. There are 113 such insurers and 95 of them participated in our survey, leading to a response rate of 84 per cent. The questionnaire covers a comprehensive set of dimensions of an ERM system. In addition to detailed questions about specific ERM activities, the questionnaire assesses when these ERM activities were initiated. The results document significant increases in the extent to which ERM is being implemented by these firms and details the sequence of implementation of this evolving risk management process.

The global financial crisis in the banking sector centred on range of issues connected with risk and its management. In effect, many banks were seen as being excessively focused on the potential rewards of high-hazard activities; but focused less on the negative consequences of those activities. The study also identified insurance policies suitable for managing banking risks, and articulated the need for banks to use appropriate insurance policies to manage their risks. Using data collected through questionnaire from 1050 participants selected through stratified sampling technique; the study analysed the use of insurance in the Nigerian banking sector. The study was based on the theoretical aspects of insurance practice. The findings suggest that: banks have insurance company or subsidiary firm, banks purchase insurance through insurance brokers/intermediaries; banks are statutorily required to purchase insurance, and centralisation of insurance and risk management practices are paramount risk management practices among banks in Nigeria. Generally, the study indicated that banks should clearly articulate risk management policies in order to promote organisation-wide effort and effective management of risks across organisational spectrum; thereby, integrating risk management into banks' philosophy, practices and business plans. The implication for practice is that insurance is a risk management tool, suitable for managing banking risks.

Purpose -The paper examines the impact of involvement in Enterprise Risk Management (ERM) on internal auditors' willingness to report a breakdown in risk procedures and whether a strong relationship with the audit committee affects willingness to report. The study also investigates the use of ERM and the role of internal audit in ERM. Design/methodology/approach -The study uses an experimental design, manipulating (i) the internal auditor's involvement in ERM and (ii) the strength of the relationship between internal audit and the audit committee. Participants are 117 certified internal auditors. The study also gathers descriptive data on the use of ERM. Findings -The study indicates that a high involvement in ERM impacts internal auditors' willingness to report a breakdown in risk procedures to the audit committee. However, a strong relationship with the audit committee does not appear to affect willingness to report. The study also finds that the majority of organisations have recently adopted ERM. Internal auditors are involved in ERM assurance activities but some also engage in activities that could compromise objectivity. Research limitations -There are internal and external validity threats associated with the experimental design. Practical implications -The findings reinforce the need for organisations to adhere to the recommendations of the IIA and to ensure that internal auditors do not play an inappropriate role in ERM. Originality/value -The study contributes to our understanding of the impact of involvement in ERM on internal audit objectivity and of the current role of internal audit in ERM in Australia.

This article presents a new avenue for healthcare risk managers to drive improvement for patients and healthcare organizations alike: Working to reduce avoidable patient suffering. It briefly describes the problem of patient suffering, differentiates between avoidable and unavoidable suffering, and suggests that common risk management tools can be used to tackle the problem. It also highlights a success story from one large health system.

This study aims to examine the effect of independent commissioners, auditor reputation, risk management committee and ownership concentration toward enterprise risk management (ERM) disclosure. Independent variables in this study are independent commissioners, auditor reputation, risk management committee and ownership concentration. The dependent variable in this study is ERM disclosure assessed by using 108 items of disclosure covering eight dimensions based on ERM Framework issued by the Committee of Sponsoring Organization of the Treadway Commission (COSO). The sample used in this study amounted to 246 financial statements of non-financial sector companies listed on the Indonesia Stock Exchange in the year 2013-2015. The existing data were analyzed using SPSS software with multiple linear regression analysis method. The result of hypothesis testing shows that auditor reputation and risk management committee have positive effect on ERM disclosure. Then, independent commissioner and ownership concentration have no effect on ERM disclosure.

Enterprise risk management (ERM) has gained an increasing attention among the corporate managers in the recent past as a strategic approach to managing risk. This study empirically verifies whether the adoption of ERM has an impact on firm performance and uses both primary and the secondary data relating to the Sri Lankan insurance companies. 230 executive level employees from 26 Sri Lankan insurance companies have been selected as the sample of this study using stratified random sampling technique and primary data were collected using a structured questionnaire. Return on Assets (ROA) and Tobin"s Q are used as proxies to measure the firm performance and ERM practices have been measured based on the guidelines of COSO ERM framework. Descriptive statistics, Correlation analysis and regression analysis are used to analyze data. Results of the mean testing reveals that three components of COSO ERM framework namely, Internal Environment, Objective setting and Risk Assessment indicate a high level of practice. Further, correlation analysis indicates two independent variables namely, control environment and Information & communication have a significant relationship with ROA. At the same time, two independent variables namely, objective setting and Information & communication have a significant relationship with Tobin"s Q. Hypotheses testing identified that Control activities; Information & communication and monitoring are the most crucial variables which have a positive impact on the performance of the insurance industry. These results indicate that, even though the level of implementation of ERM practices in Sri Lankan insurance industry is moderate / high levels, the other than Control activities, Information & communication and monitoring all other five components are not showing significant impact towards the performance. It implies that the expected value addition from the ERM practices have not been achieved by the Sri Lankan insurance companies yet. Findings of this study contributes methodologically as researcher used robust model to measure ERM practices and the results may be helpful to Insurance companies in Sri Lanka to improve their ERM practices and to adopt efficient strategies to improve firm financial performance through the implementing proper ERM practices.

This report includes two major parts, the first one is about the strategies BP incorporated prior to the Gulf Oil Spill in 2010 and how well did the company do in terms of mitigate its strategic risks. There are four major strategic risks imposed on BP, which are industrial downturn in gas, energy demand shortfall, pricing pressure and reputation (mis)management since its series of safety incidents.

Questo volume rappresenta una novità assoluta nel panorama editoriale italiano, poiché nasce specificamente per gli studenti delle lauree di primo livello e per coloro che per la prima volta si accostano al mondo della finanza aziendale. Il libro, pur riprendendo e rielaborando i contenuti del fortunato manuale degli stessi autori “Finanza aziendale”, da quindici anni indiscusso punto di riferimento in ambito universitario e professionale, ne innova profondamente l’impianto teorico, con nuovi obiettivi, nuovi contenuti e un approccio integrato anch’esso totalmente inedito. Già dal titolo si coglie infatti l’esigenza di coniugare, in tempi di profondo ripensamento dei paradigmi economici, il principio di massimizzazione del valore aziendale con elementi di gestione del rischio, sempre più necessari per permettere all’impresa la sopravvivenza in periodi turbolenti nei quali la volatilità dei mercati, la stretta sul credito e la carenza di liquidità sui mercati interbancari rischiano di mettere in discussione tutti i modelli della finanza neoclassica.

PT. Danareksa (Persero) as a pioneer in Indonesia's capital market with long tradition and trend, Danareksa faced a huge impact when financial Crisis has been befall Indonesia. This Journal specifically discussing about "how Danareksa overcome their crisis". This Journal presented in bahasa indonesia

The genesis of this IFC White Book lies in the teaching materials prepared for IFC’s Risk Governance Workshops conducted in 20 developing countries during the 2010–2012 time period by the book’s authors. The book and workshops also benefited from the contributions of Torben Andersen of Copenhagen Business School and Zur Shapira of New York University’s Stern School of Business. The contents of the book reflect this team’s years of risk management and governance practice as managers, directors as well as their academic scholarship.

More than 1,000 corporate directors and senior managers participated in the workshop series. The handbook has been shaped by their views, experiences and other feedback and reflects the richness of wide and varied collective experience. The authors have shared specific examples from the participants’ experiences in the handbook — as much as confidentiality constraints allow.

Numerous stock exchanges, regulators, central banks, schools and other institutions partnered with us in hosting the events. The workshops would not have been possible without their administrative support. They also provided key intelligence on local conditions and helped us frame materials to specific emerging market conditions.

IFC staff in local offices and in Washington, D.C. gave their time to help to make these workshops happen. These extended team members are valuable contributors to this final product in as much as their efforts, contacts, and knowledge contributed to the workshops and to the shaping of the consulting teams’ views on risk-taking challenges in emerging markets.

The workshops were funded by contributions from the governments of the Netherlands and Austria, and from IFC. Without their commitment to development, these workshops and this handbook would not have been possible.

During recent mega-disasters, such as the 2011 Great East Japan Earthquake and the 2011 Thailand floods, interdependencies in supply chains caused substantial economic damage, often exacerbated by vulnerable small and medium enterprises (SMEs). Therefore, a new global framework in disaster risk reduction, the Sendai Framework for Disaster Risk Reduction 2015– 2030, mentions the role of the private sector in achieving a resilient society. However, the framework’s statements are abstract and they need to be converted into actionable agendas. This paper identifies future directions for private sector resilience to disasters, focusing on business continuity. Even though business continuity has been regarded as a critical factor in conventional disaster planning, Business Continuity Management (BCM), articulated as a holistic management process, tends to be designed and implemented selectively by each organization. To address SMEs and supply chain resilience, this paper proposes a new type of BCM, a regional BCM based on Public-Private Partnership (PPP), and a new role for the insurance industry.

This article examines the use of enterprise risk management (ERM) by companies in Canada, the characteristics that are associated with the use of ERM, what obstacles companies face in implementing ERM, and what role, if any, corporate governance guidelines have played in the decision to adopt ERM. We obtained our data from the responses to a mail survey sent to Canadian Risk and Insurance Management Society members as well as telephone interviews with 19 of the respondents. The results indicate that 31 percent of the sample had adopted ERM and that reasons for adopting ERM include the influence of the risk manager (61 percent), encouragement from the board of directors (51 percent), and compliance with Toronto Stock Exchange (TSE) guidelines (37 percent). The major deterrents to ERM were an organizational structure that discourages ERM and an overall resistance to change. Although only about one-third of companies indicated that they had adopted an ERM approach, evidence was clear that a larger portion of the sample was moving in that direction, as indicated by what changes they had observed in their companies in the past three years. These include the development of company-wide guidelines for risk management (45 percent), an increased awareness of nonoperational risks by operational risk management personnel and an increased awareness of operational risks by nonoperational risk management personnel (49 percent), more coordination with different areas responsible for risk management (64 percent), and more involvement and interaction in the decision making of other departments. Contrary to what we expected, there was not a significant difference between firms that are listed on the TSE versus those that are not in terms of the propensity to use ERM. However, the fact that 37 percent of firms indicated that the TSE guidelines were influential in their decision to adopt ERM provides some evidence that the guidelines are influencing companies' risk management strategies.

Over the years the general insurance companies have been undertaking extensive risk management activities to safe guard the investor as well as investment. In the present day scenario the two aspects which are of great importance to the general insurance industry are firstly the opportunities in the Indian general insurance market and the resulting focus of players on achieving business growth and secondly the ongoing process of calibrated de-tariffing. Though de-tariffing has provided players with significant opportunities in tapping markets and in coming times may result into providing even more opportunities, it has placed the onus of correct pricing on the players themselves. This has resulted in players preparing and emphasizing more on identifying risk parameters and pricing products based on risks. The players under the immediate response to the pressure of a free market scenario, has dropped the rates even in hitherto non-profitable businesses. An efficient risk assessment and management in general insurance industry lays great emphasis due to entry of private players, corresponding policy changes and the present day fact of unprofitable books, erosion of capital resulting from unmanageable claim ratios.

Process mining techniques and tools perfectly complement the existing set of enterprise risk management approaches. Enterprise risk management aims at minimizing the negative effects of uncertainty on the objectives, while at the same time promoting the potential positive effects. Process mining research has proposed a broad range of techniques and tools that could be used to effectively support the activities related to the different phases of risk management.

The paper examines enterprise risk management (ERM) practice in insurance companies in Nigeria. Specifically, the study explores the understanding, motivation and performance of ERM in the Nigeria's insurance industry, and the challenges which insurance companies faced in implementing ERM. The study concludes that the level of understanding of the nature of ERM varies significantly between companies and between different parts of the same organisation. The implication for practice is that effective ERM requires an interdisciplinary approach; but, the ERM which is practiced by insurers in Nigeria is dominated by a single discipline. The design of ERM is highly company specific and depends on several factors, e.g., the business model in terms of type of business, geographical presence, etc. ERM design also depends on the risk appetite of an organisation, which includes both qualitative and quantitative elements.

Sıkça kullanılan " risk ne yaptığını/yapacağını bilememekten kaynaklanır " sözü as-lında kurumsal risk yönetimi kavramına dair bu devasa yazının ortaya çıkmasını anlamaya yardımcı olacaktır. " Kurumsal Risk Yönetimi (KRY) " bir işletmenin ya da bir örgütün değerini arttırmaya yönelik; ekonomik, sosyolojik, psikolojik, ope-rasyonel, finansal, stratejik bir kavramdır. Kavram, performans, kâr, avantaj, kayıp, hedef gibi kavramlarla ilişkili olup hem bir araç hem de bir yaklaşımdır. Bu doğrul-tuda; çalışmanın amacı, KRY kavramını anlamak, ilgili yazındaki çalışmalardan elde edilen bilgileri bir araya getirmek, kavramın önemini anlatmak ve araştırmacı-lara gelecek çalışmalarla ilgili bazı önerilerde bulunmaktır. Bu amaç doğrultusunda çalışmada 1992-2018 yılları arasında KRY ile ilgili 82 adet çalışma incelenmiş ve bu çalışmalar içerisinden kavramsal tanımlar, vurgulanan ilişkiler ve önemli oldu-ğunu düşünülen nicel ve nitel araştırmalar tespit edilmiş, elde edilen sonuçlar pay-laşılmış ve değerlendirilmiştir.

Information technology services providers play a substantial role in regulated fields such as Canada’s finance industry, where they provide services that necessitate access to client
data and intellectual property. Over the past decade, regulators, auditors, and corporate boards have been becoming more aware of the legal, compliance, financial, and information risks posed when regulated firms share operations and information management duties with
service providers. This propels regulators to establish risk management guidance on outsourcing arrangements that sets the bar for service providers at the same level as the
regulated firms themselves.
In response, a service provider may choose to undertake a risk-centric initiative to improve its processes. These changes to core activities can impact the cost, complexity, and agility
of the service provider’s service—altering the company’s ability to deliver.
This study attempts to answer the question, “How can risk management practices improve service delivery and define competitive advantage for technology service providers that
serve regulated industries.”
Answering this question required an understanding of “competitive advantage” for technology firms that provide technology to regulated industries, and an understanding of
what a risk management function involves for those firms. This study determines that these concepts intersects within a firm’s selection of internal activities, in the consistency of those activities, and in the relationship between a firm’s activities and its strategic capabilities. At this focal point, there exists an opportunity for leveraging risk management initiatives towards competitive advantage.
The opportunity lies in a structured approach aimed not at simply obtaining an audit report, but in recognizing the fundamental impacts that arise when changes are made to a
company’s core processes. This broader approach eliminates the inherent risks in such a wide-sweeping initiative, and aims to realize lasting competitive advantage.

Research Question/Issue: In this paper we identify and discuss the relationship between corporate governance and risk management of high technology firms, with publicly listed Australian biotechnology companies as a case in point. We present a governance structure that better manages the numerous complex risks such companies face. Research Findings/Insights: Audit committees are traditionally responsible for oversight of auditing matters relating to the company's financial systems and risk management relating to financial reporting. While the audit committee needs to have a full understanding of the risk management system in order to be able to assess the overall risk profile of the company we illustrate that the complex risk and regulatory environment high technology firms face may necessitate the creation of a separate risk management committee to interface with and assist the board and audit committee. Theoretical/Academic Implications: We provide evidence that the traditional governance model is inadequate in today's complex business environment, particularly for high technology companies. By analyzing the legislative, industry, and complex risk environment faced by these firms, we posit that the traditional model may need to change to meet the demands of a wider definition of governance that specifically incorporates risk management. Practitioner/Policy Implications: Against a backdrop of corporate collapse, increasing corporate regulation and reporting, risk management and oversight has been a recent addition to the role of the board. It is not inconceivable that capital market regulators may require reporting on risk management and the creation of a separate risk management in the future.

In recent days Enterprises are managing their business continuity through the Telecommunications, internet and networking technologies. It's an example for effective enterprise risk management. However, there may be an immense impact in progress. The purpose of this research study to further investigate on major categories on three different angles, resilience in work culture from employee's perspective, type of industry and functions of enterprise. A pilot study survey has been conducted with 300 respondents through structured questionnaire. Survey results indicated direct employees, Project

Risk assessment, by itself, does nothing to reduce risk or improve safety. It can only change outcomes by informing the design and management of effective risk control interventions. But current practice in healthcare risk management suffers from an almost complete lack of support for risk control. This first installment of a 2-part series on rebalancing risk management describes a new framework to guide risk control practice: The Process for Active Risk Control.

Over the years the general insurance companies have been undertaking extensive risk management activities to safe guard the investor as well as investment. In the present day scenario the two aspects which are of great importance to the general insurance industry are firstly the opportunities in the Indian general insurance market and the resulting focus of players on achieving business growth and secondly the ongoing process of calibrated de-tariffing. Though de-tariffing has provided players with significant opportunities in tapping markets and in coming times may result into providing even more opportunities, it has placed the onus of correct pricing on the players themselves. This has resulted in players preparing and emphasizing more on identifying risk parameters and pricing products based on risks. The players under the immediate response to the pressure of a free market scenario, has dropped the rates even in hitherto non-profitable businesses. An efficient risk assessment and management in general insurance industry lays great emphasis due to entry of private players, corresponding policy changes and the present day fact of unprofitable books, erosion of capital resulting from unmanageable claim ratios.

Although it is probably the best-known Prospective Hazard Analysis (PHA) tool, Failure Mode and Effects Analysis (FMEA) is far from the only option available. This paper introduces one of the alternatives: The Structured What-If Technique (SWIFT). SWIFT is a flexible, high-level risk identification technique that can be used on a standalone basis, or as part of a staged approach to make more efficient use of bottom-up methods like FMEA.

In this paper we describe the method, assess the evidence related to its use in healthcare using a systematic literature review, and suggest ways in which it could be better adapted for use in the healthcare industry. Based on the limited
evidence available, it appears that healthcare workers find it easy to learn, easy to use, and credible. Especially when used as part of a staged approach, SWIFT appears capable of playing a useful role as component of the PHA
armamentarium.

Enterprise risk management (ERM) has emerged as a new paradigm for managing the portfolio of risks that face organizations, and policy makers continue to focus on mechanisms to improve corporate governance and risk management. Despite these developments, there is little research on factors associated with the implementation of ERM. Research is needed to provide insights as to why some organizations are responding to changing risk profiles by embracing ERM and others are not.

The main objective of the research is to examine the effect of risk management practices on performance of Small and Medium Scale Enterprises (SMEs). The convenience sampling method was used for the study. The study used a sample size of 285 small and medium scale enterprise businesses for the analysis.  The study used primary data obtained through questionnaire administration which was analysed using SPSS 25 and Microsoft Excel 2019. The study used both descriptive and inference analysis to analyse the data. According to the findings, low educational level of respondents helped to conclude that risk management is not widely practiced in SME businesses. Risk management practices are not well practiced in SME business because the SME owners possess low level of knowledge in the areas of identifying, assessing, treating and monitoring key operational risks. The positive relationship between risk management practices and performance is indicative that the proper practice of risk manage...

ERM) is " …a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may effect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives."

Saat ini pembangunan infrastruktur di Indonesia sangat berkembang pesat. Perusahaan konstruksi bersaing untuk memperebutkan proyek pembangunan infrastruktur di Indonesia. PT NKE salah satu perusahaan konstruksi swasta yang baru saja terlibat kasus pelanggaran hukum. Bagaimana langkah strategis yang dilakukan PT NKE dalam menghadapi kasus pelanggaran hukum dan bagaimana cara NKE mampu tumbuh dan
mempunyai daya saing dengan kompetitor di Industri jasa konstruksi.
Perusahaan NKE harus menyelesaikan permasalahan hukum serta bertanggung jawab mengganti rugi sebagai bentuk corporate responsibilities, kemudian melakukan implementasi Good Corporate Governance (GCG), secara bertahap perusahaan membangun Brand image & Company Reputation yang lebih baik dengan melakukan
rebuilding trust strategy, selanjutnya memperbaiki tata nilai perusahaan (corporte values) untuk menciptakan SDM yang berkomitmen supaya tidak terjadi lagi kasus pelanggaran hukum dan mampu mengimplementasikan tata nilai perusahaan secara baik dalam perilaku
saat bekerja, serta untuk mencegah terjadinya kasus pelanggaran hukum perusahaan melakukan aturan dari Sarbanes Oxley Act (SOX) & Enterprise Risk Management (ERM) COSO bertujuan untuk mencegah terulangnya kasus-kasus pelanggaran yang terjadi di perusahaan, inisiatif bersama untuk memerangi penipuan perusahaan dan mampu
mendetiksi dini apabila terjadi praktik kecurangan di perusahaan.
Hal inilah yang menjadi langkah strategis perusahaan untuk mampu berkembang dan mampu memperoleh kepercayaan kembali dari para stakeholders, serta memberikan peluang untuk mendapatkan proyek pembangunan infrastruktur di Indonesia.

Kata Kunci: General Business Environment, PT NKE, DGI, Good Corporate Governance, Restrukturisasi Perusahaan, Rebuilding trust strategy, Corporte Values, Sarbanes Oxley Act, Enterprise Risk Management, ERM COSO.

Kerja Praktik Industri (KPI) merupakan kegiatan pembelajaran yang dilaksanakan di dunia industri, bertujuan melihat kondisi aktual di industri. Tujuan dari KPI di Departemen Production Admin untuk mengamati kegiatan/pekerjaan harian yang dilakukan di departemen ini. Dalam laporan KPI ini, penulis melakukan analisa terhadap performa Kaizen yang berjudul “Reduce ClO2 Consumption From 17,23 To 15,8 Kg/Adt at Fiberline 2 During Kraft Pulping”. Evaluasi dilakukan dengan menganalisis data konsumsi ClO 2 di Fiberline 2 dari November 2019 s/d November 2020, memfokuskan area chip screen hingga bleaching (D0, EOP, D1 dan D2 stage). Analisa performa Kaizen dilakukan dengan melihat data A3 form, data daily saat Kaizen week, data result summary post-Kaizen serta diskusi dengan pembimbing lapangan. Data harian dan bulanan Kaizen menunjukkan penurunan konsumsi ClO 2 yang menandakan tindakan perbaikan berdampak besar terhadap peningkatan performa washing, penurunan soda loss, COD, charging ClO 2 serta penurunan biaya operasional. Pada bulan Oktober dan November 2020 terjadi peningkatan kembali konsumsi ClO 2 di fiberline 2 disebabkan fiberline 1 menaikkan target pemasakan, sehingga air pencucian menjadi berlebih, menyebabkan air pencuci di fiberline 2 harus diturunkan dan mengakibatkan peningkatan soda loss serta penurunan brightness. Untuk mengantisipasinya perlu peningkatan dosis ClO 2 . Pencucian yang tidak efisien menyebabkan konsumsi ClO 2 semakin banyak untuk bleaching stages. Penghematan ClO 2 aktual selama 5 bulan setelah Kaizen week yaitu 9.799 USD/bulan.