Evaluation of Risk Management Implementation Using COSO ERM 2017 Framework: A Case Study at PT XYZ

Fitria Febriani; Machmudin Eka Prasetya

doi:10.17977/jabe.v10i2.63470

Evaluation of Risk Management Implementation Using COSO ERM 2017 Framework: A Case Study at PT XYZ

Fitria Febriani, Machmudin Eka Prasetya

Abstract

This study aims to evaluate the implementation of risk management at PT XYZ using the COSO Enterprise Risk Management (ERM) 2017 framework. PT XYZ, a trading and distribution company operating in the industrial equipment sector, faces increasingly complex risks driven by economic uncertainty, supply chain disruptions, and operational vulnerabilities. The study employed a qualitative approach with a case study method, collected data through documentation reviews and semi-structured interviews with seven senior management representatives directly involved in the company’s risk management processes. Data analysis used descriptive qualitative methods based on the five components and twenty principles of COSO ERM 2017. The results show that PT XYZ implemented several key aspects of risk management, through its organizational structure, policy guidelines, and processes that support risk management activities. However, several weaknesses remain, such as PT XYZ does not have an audit or risk committee, does not have a formal risk appetite document, incomplete implementation of risk responses, and the lack of a portfolio level risk view. PT XYZ's risk management function also has never been assessed by an independent or external party and does not have whistleblowing system. This research contributes by providing a comprehensive mapping of the implementation of COSO ERM 2017 at PT XYZ and identifying the gap between theory and practice that still occurs in corporate risk management.

Keywords

COSO ERM 2017; Enterprise Risk Management; Risk Management; Risk Management Implementation

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DOI: http://dx.doi.org/10.17977/jabe.v10i2.63470