This study aims to determine the future value and the value-at-risk estimation of four selected currencies, namely United States Dollar (USD), Australian Dollar (AUD), European Union Euro (EUR) and Japanese Yen (JPY) against Indonesian Rupiah (IDR). The Monte-Carlo simulation is implemented to estimate the future value of each currency relationship and integrating it with the concept from the copula method; the risk value estimation is conducted using Value-at-Risk (VaR), and the VaR estimation is within the range of 90%, 95% and 99% confidence interval. The copula method we use in this study is Clayton copula because it has the highest log-likelihood value compared to Frank and Gumbel copula; with an addition, each currency uses their regressive model to see if the selected exchange rates have the characteristic of a seasonal or non-seasonal pattern. The result we obtain in this study are JPY/IDR, and EUR/IDR relationships have the highest simulated loss and estimated risk values in each confidence interval.

This study identified the risk management maturity status, revealed the major sources of the firm risk management maturity, issues in running quality risk management of a financial technology firm in Indonesia, and recommended enhancements. It used the Risk and Insurance Management Society – Risk Maturity Model to evaluate the risk management maturity status. To get detailed information about the risk management implementation, the researchers also did observations and interviews. This study confirmed that the firm was in ad-hoc status. The firm was overconfident of their previous success in implementing risk management and careless in transforming the risk management concepts into real practices. Thus, they lost their ability to decide appropriate decisions in handling the risks that they faced. As a result, they could not run effective and efficient management. Detail findings and recommendations on the risk management maturity of the firm are provided in this article.

It has been a general belief that the public’s perception can affect the firm’s value. Subsequently, many initiatives have been made by various governments to pull such effects on their listed firm. Particularly in Indonesia, one of those initiatives is known as Annual Report Award (ARA), whereby its participants are required to show their good corporate governance (GCG) practices. Thus, the purpose of this study is to investigate the 2018 ARA’s effect on the market performance of its listed firms’ categories. In which, the analysis focuses on the categories’ abnormal returns and the abnormal trading volume. Through the application of the event study methodology, the findings imply that the Indonesian capital market is more attentive to the participants within the financial state-owned enterprise category, and 2018 ARA has helped increase the participants’ abnormal return within the respective category. Although an increase in abnormal returns is not necessarily accompanied by an increase in abnormal trading volume, the findings also suggest that the 2018 ARA can influence participants’ stock returns across multiple market indices. Hence, the ARA event could influence the public’s perception and, simultaneously, bringing added value to its participants.

Given that the role of information technology (IT) governance and enterprise risk management (ERM) within the organization are imperative due to the ever-increasing complexity in the corporate environment, this study aims to uncover the relationship between IT governance and ERM along with the impact of the two frameworks’ interconnectedness on the organization’s performance through empirical literature review. Furthermore, the findings obtained from the empirical review are also used to create a checklist that every organization can apply. The purpose of the created checklist is to help organizations examine the interconnectedness of their IT governance and ERM with respect to their needs and objectives. The findings from the empirical review show that both IT governance and ERM emphasize the importance of strategic and process alignment regarding its implementation, and it is positively significant to the organization’s performance. Hence, the level of effectiveness of one’s IT- and risk-oriented approaches are dictated by how well an organization appropriately aligns its IT governance and ERM structure, mechanism, and process with its objectives, needs, and business operations.

No abstract