A. Introduction

Risk management is an integral necessity in strengthening the principles of Good Corporate Governance (GCG). In a constantly changing and uncertain business environment, the implementation of effective risk management is crucial to ensure healthy business practices and to provide added value in line with the expectations of stakeholders. Every element within the organization, from top management to all employees, plays a vital role in creating a trustworthy and sustainable business environment. With a shared commitment to managing risks, the company can enhance its chances of achieving the goals and targets outlined in the Company Work and Budget Plan (RKAP).

PT Jasa Raharja (Persero) has undertaken several initiatives to increase risk awareness among all employees. The implementation of risk management at Jasa Raharja refers to ISO 31000: 2018, with the responsibility for risk management being under the Directorate of Compliance and Risk Management in the Risk Management Unit. Since 2012, the Risk Management system has utilized a supporting application called the Risk Management Information System (SIMR). In 2023, this application was upgraded with additional supporting features aimed at simplifying the processing and reporting of corporate risk management.

Risk management is one of the essential elements of corporate governance principles while also having a strategic function to identify various risks that the Company may face or is currently facing. Corporate Risk Management also aims to protect management from producing policies that could harm the Company in the future. The Company is committed to consistently supporting the implementation of risk management as part of fulfilling compliance with shareholder aspirations. In its implementation, the issuance of PER-2/2023 is a form of strengthening the application of corporate risk management, which has adopted ISO 31000:2018 Risk Management. In terms of risk maturity, performance aspects are calculated as a reflective measure of the overall dimensions of risk management. The implementation of risk management is expected to strengthen existing values and provide added value for the Company.

B. Basis for Risk Management Implementation

The legal compliance considerations underpinning the implementation of risk management at PT Jasa Raharja (Persero) are as follows:

1. Regulation of the Minister of State-Owned Enterprises No. PER-2/MBU/03/2023 concerning Guidelines for Governance and Significant Corporate Activities of State-Owned Enterprises;

2. Regulation of the Financial Services Authority Number 28/POJK.05/2020 concerning the Assessment of the Health Level of Non-Bank Financial Services Institutions;

3. Regulation of the Financial Services Authority Number 44/POJK.05/2020 concerning the Implementation of Risk Management for Non-Bank Financial Services Institutions;

4. Regulation of the Financial Services Authority Number 4/POJK.05/2021 concerning the Implementation of Risk Management in the Use of Information Technology by Non-Bank Financial Services Institutions; and

5. Technical Guidelines Number SK-6/DKU.MBU/10/2023 concerning Technical Guidelines for the Risk Management Process and Aggregation on the Risk Taxonomy Portfolio of State-Owned Enterprises.

C. Organizational Structure of the Risk Management Division