PENGARUH KARAKTERISTIK PERUSAHAAN DAN MEKANISME CORPORATE GOVERNANCE TERHADAP PENERAPAN ENTERPRISE RISK MANAGEMENT (ERM) DI INDONESIA: EFEK MODERASI FUNGSI MANAJEMEN RISIKO (Studi Pada Perusahaan yang Terdaftar di BEI Tahun 2019)

Abstract

This study aims to determine the effect of firm characteristics and corporate governance mechanisms on the implementation of Enterprise Risk Management (ERM) with additional testing moderating effect of risk management function on company characteristics and the implementation of Enterprise Risk Management (ERM). This study uses a quantitative approach using secondary data from the company's annual report. The population in this study were companies listed on the Indonesia Stock Exchange in 2019. The sampling technique was carried out using the purposive sampling method which produced 248 samples. The results of multiple regression analysis and moderation through SPSS 25 showed that firm size and type of industry have a significant effect on Enterprise Risk Management (ERM) implementation. Firm complexity, institutional ownership, corporate governance mechanisms (independent commissioner, internal audit and quality of external auditors) have no significant effect on the implementation of Enterprise Risk Management (ERM). The risk management function is unable to moderate the influence of firm size, firm complexity, type of industry, and institutional ownership on the implementation of Enterprise Risk Management (ERM).

Keywords: Enterprise Risk Management (ERM), Firm Size, Firm Complexity, Type of Industry, Institutional Ownership, Independent Commissioner, Internal Audit, Quality of External auditor, Risk Management Function.