OJK Encourages The Implementation Of Risk Management And Compliance In The Financial Services Industry

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority continues to be committed to encouraging the implementation of governance (management), risk management (risk management risk) and compliance (compliance) at the abbreviation of GRC, in an integrated financial services industry.

The chairman of the OJK Audit Council, Sophia Wattimena, said that this effort is expected to increase resilience, competitiveness, adaptive, efficient and contribute optimally to economic development.

In addition, it is also expected to provide consumer-oriented financial products and services.

"We believe that integrated GRCs need to be implemented because globally, the financial industry is now facing the rapid development of the digital economy in line with changes in consumer behavior, large development financing needs, and high volatility in the global financial market," he said in a written statement today, Saturday, August 27.

According to Sophia, GRC as a discipline aims to collaborate and synchronize information and activities to achieve organizational goals.

He added that a business process would be forced to change taking into account the technological advances and global risks faced. Along with the increasing changes and maturity of the organization, the GRC is becoming more important to harmonize with changes in the organizational business processes.

"If GRC is implemented using technology effectively, it will allow decision makers to predict risks with greater accuracy, and take advantage of important opportunities for organizational development," he said.

He also revealed that in implementing GRC internally, OJK has implemented a combined assurance method within the framework of three lines of defense.

Meanwhile, this method optimizes ways to ensure the implementation of GRCs in all lines of defense.

The implementation of integrated insurance in all lines uses risks as its basis. Thus, the implementation of GRC can be monitored and evaluated continuously and more effectively on significant issues," he said.

Sophia added, as a regulator in the financial services sector in Indonesia, OJK is also committed to taking part proactively in strengthening GRC in the financial services sector by issuing several OJK Regulations (POJK).

"We are all doing this to regulate and protect the banking sector, capital markets and non-bank financial industries, which will continue to be adjusted to pay attention to the latest developments in GRC," he concluded.