How Possibility Implementations Erm Of Our Country

Published Date: 02 Nov 2017

INTRO (giving background/problems/data institutions compare with another country)

BACKGROUND

In several years ago, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) has successfully issued as an internal control integrated framework. The purpose of this publication, of course, to help the actors other business organizations as well as organizations in the assessment and improvement efforts associated with the internal control system. The framework can be applied to the policies, rules and regulations, and is used by various entities for improvisational control business process activities towards efforts to achieve the goals set previously.

Recently, practitioners have realized and emphasized the need for the attention of practitioners to focus on risk management aspects. Requirement this seems increasingly clear after the perceived need for a framework that is free from any influence, so that later can be used for the sake of identification, assessment and manage risk effectively. In 2001 COSO along with PricewaterhouseCoopers, successfully answering the challenge by developing a framework that can be used to evaluate managers increase organizations enterprise risk management. COSO Enterprise Risk Management argued that - Integrated Framework to provide concepts and key principles, common language, guidance and clear direction. Even more are expected to be widely accepted by various companies and other organizations, stakeholders and other interested parties.

Basically the concept of Enterprise Risk Management - Integrated Framework is to develop the concept of internal control that is free from the influence and increasingly focusing on aspects of enterprise risk management. This concept is not intended to replace the internal control framework that is it is a unity. The managers can take advantage of the Enterprise Risk Management - Integrated Framework to meet and satisfy the needs of internal control and risk management to support the process. so it must be anticipated and controlled by managers is to what extent the ability of an entity is ready to face and accept the risk in order to value creation.

The underlying premise of enterprise risk management states that each entity set that is destined to create value for its stakeholders. Each entity in carrying out operational activities always face the problem of uncertainty. The managers are challenged professional competence in the form of the ability to determine the extent of the uncertainty it faces can be controlled, so that the effort aimed at increasing stakeholder value can be realized.

Uncertainty often faced by managers can be either the risks or the opportunities that can be obtained through a managerial actions that can reduce or increase the value creation. Through the implementation of Enterprise Risk Management - Integrated Framework, managers are expected to be able to deal effectively with the problems of uncertainty associated with the risk and the opportunities that may provide the potential for increased value creation capacity.

Value is said maximal if successful managers formulate strategies and objectives to optimize the balance between revenue growth and risk, efficiency and effectiveness of the use of economic resources in realizing those objectives. The experts, further suggests that the concept of Enterprise Risk Management covers aspects:

Alligning risk appetite and strategy.

Enhancing risk response decisions.

Reducing operational surprises and losses.

Identifying and managing multiple and cros-enterprise risks.

seizing opportunities.

Improving deployment of capital

Capabilities inherent in the concept of Enterprise Risk Management can actually help the management in terms of:

Efforts to achieve the performance or the performance of an entity, profitability targets and help carry out preventive measures for possible losses arising from the use of cracked-Suber economical.

The effectiveness of reporting and compliance with rules and regulations,

Avoid and prevent and maintain sntitas reputation and associated consequences.

We can say that the Enterprise Risk Management helps an entity to be directed where and avoiding risks or unanticipated shocks visible and influential in the creation of value.

Enterprise risk management (ERM) refers to methods and processes used by Organisations to manage risks or seize opportunities related to the achievement of their objectives. Enterprise risk management covers all categories and all material risk factors can influence the organization's value. The risk based approach integrates the concepts of strategic planning, operations management and internal control. While the traditional risk management is more about p reventing something from happening, enterprise risk management is something about helping happen.

The COSO "Enterprise Risk Management-Integrated Framework" published in 2004 defines ERM as: "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 affect the entity, and manage risk to be within its risk appetite, to Provide reasonable assurance regarding the achievement of entity objectives. "

Chronology Demands Reform-Implementation of SPI

1997/1998

Public pressure on the government to improve performance, accountability and transparency. Dissatisfaction on the control system that runs

1999

The birth of the Law. 28 Year 1999 on State Implementation of the Clean and Free from Corruption

2003/2004

The birth of the three packages financial reform legislation of the country. Mandate to set and implement internal control systems

2008

The birth of the Regulation 60 of 2008 on SPIP

2013

SPIP can not be implemented ministries / agencies / local government as a whole.

Government's system of internal control is the Internal Control System overall is held in the central government and local governments. SPIP aims to provide reasonable assurance for achieving effectiveness and efficiency in achieving the purpose of administration, reliability of financial reporting, safeguarding assets, and compliance with laws and regulations.

Model-Based Implementation of COSO Internal Control Systems Ballau and Heitger (2005)

internal Enviroment

Developing a risk management philosophy

Take steps to understand the risk appetites of key stakeholder groups of the organization.

Take steps to align the risk appetites of all stakeholder groups.

Creating risk management culture

Emphasize integrity and ethical values in every endeavor.

Emphasize the role of employee commitment and capability by giving them incentives and measures.

Design human resources policies and practices to support a risk culture.

Design a Risk Management Organizational Structure

Establish responsibility for all board members and senior executives.

Consider organizing a risk committee beyond the audit committee.

Assign authority and responsibility for risk management to an executive such as a chief risk officer.

Objective Setting

Establish Clear, Strategic Objectives and Strategies

At entity-wide level.

At other levels of the organization to the extent that a direct, material impact on the entity is reasonably likely.

Determine the organization-wide risk appetite

Align the risk appetites of key stakeholders with those of the company’s strategic objectives and strategies and its alliance partners.

Event Identification

Identify risks Events

Consider factors influencing objectives and strategies.

Analyze each risk category (i.e., strategic, operational, reporting, and compliance) carefully.

Consider the relationship between risk (i.e., isolated, part of a chain reaction, those that cause ripple effects)

Identify issues related to the measurement techniques / methodologies used

Risk Assessment

Choosing a risk assessment techniques

Assess the probability of risk events

Assessing the impact of the cost of risk

Make a risk map

Risk Response

Identifying and selecting the response for each risk

Selected response considering the other risk

Adjust the risk map

Control Activities

share the risk

reducing the risk

Adjust the risk map

Information and Communication

Assured that the information system can measure and report risk

Communicate the effectiveness of risk management and cost

Monitoring

Carry out a separate risk assessment

Re-evaluate the risk assessment

Expanding the application of risk management

PROBLEM

Risk of an event that may occur, which can lead to missing the goal. While the problem is the risk that the barrier is causing the achievement of objectives. Organizational unit responsible for the purpose needs to identify the risks and problems that are relevant to objectives.

QUESTION RESEARCH

RESEARCH OBJECTIVES (ERM/COSO to test....)

LITERATURE REVIEW (min. 20 reference)

Preview research

International journey

Literature

METHODOLOGY & METHODS

Type of research: survey, descriptif, analysis

How to collect data, explore of technics, respondens

Correlations between variable

RESULT & DISCUSSION

CONCLUCION & RECOMENDATION