MANAJEMEN RISIKO KEUANGAN || TUGAS SESI 1|| SHARLA TWO DILLA

Summary

This presentation covers the essential concepts of financial risk management in banking. It explores different types of risks including credit, liquidity, interest rate, market, operational, legal, and reputation risks. The speaker emphasizes the importance of risk management processes such as risk identification, evaluation, and control to prevent financial losses. The script also highlights the role of accounting and Islamic finance in managing these risks, aiming to minimize losses and maximize opportunities for financial institutions.

Takeaways

• 😀 Risk is defined in three ways: as a potential for loss, a possibility of loss, and as uncertainty about future outcomes (Von Hug & Sugianto, 2014).
• 😀 In banking, risk is categorized into seven types: credit risk, liquidity risk, interest rate risk, market risk, operational risk, legal risk, and reputation risk (Jogo, 2012).
• 😀 Credit risk refers to the risk of a borrower defaulting on a loan, interest, or both.
• 😀 Liquidity risk pertains to a bank's ability to meet its obligations without incurring unacceptable losses.
• 😀 Interest rate risk arises from fluctuations in interest rates, affecting the value of loans or bonds.
• 😀 Market risk relates to potential losses due to changes in market conditions, often measured using value-at-risk (VaR).
• 😀 Operational risk refers to financial losses due to disruptions in daily business operations.
• 😀 Legal risk involves the potential for losses arising from lawsuits or legal challenges.
• 😀 Reputation risk can damage a bank's reputation and affect its market value and shareholder confidence.
• 😀 Risk management in financial institutions is essential to prevent significant losses and ensure long-term stability. It involves identifying, measuring, monitoring, and controlling risks (Bank Indonesia Regulation).
• 😀 Effective risk management also includes evaluating risks, selecting appropriate techniques to mitigate them, and setting performance standards to keep the company within acceptable risk limits.

Q & A

What are the three definitions of risk according to Von Hug in Sugianto's 2014 study?

According to Von Hug in Sugianto's 2014 study, risk is defined in three ways: 1) Risk as a possibility of loss, 2) Risk as the possibility of loss, and 3) Risk as uncertainty.

What are the seven types of risks in banking according to Jogo's 2012 study?

The seven types of risks in banking, as per Jogo's 2012 study, are: 1) Credit risk, 2) Liquidity risk, 3) Interest rate risk, 4) Market risk, 5) Operational risk, 6) Legal risk, and 7) Reputation risk.

Why is risk management particularly important in the financial sector?

Risk management is more critical in the financial sector because the financial industry deals with large sums of money and has significant systemic implications. Effective risk management is necessary to avoid potential financial crises and losses.

How does Firmansyah (2010) define risk management?

Firmansyah (2010) defines risk management as a process of anticipating risks to prevent losses from occurring within a banking organization.

What does the Indonesian Financial Services Authority (OJK) say about risk management in banking?

The Indonesian Financial Services Authority (OJK) states that risk management involves a series of methodologies and procedures to identify, measure, monitor, and control risks arising from a bank’s activities.

What are the main objectives of financial risk management?

The main objectives of financial risk management are to minimize losses and enhance opportunities, ensuring that business operations are controlled within acceptable limits while being profitable.

What does the process of risk management consist of, according to Hogner and Health (2015)?

According to Hogner and Health (2015), the risk management process consists of five steps: 1) Identifying risks, 2) Analyzing risks, 3) Choosing techniques to manage risks, 4) Selecting strategies, and 5) Controlling risks.

Why should risks be identified continuously and systematically?

Risks should be identified continuously and systematically to ensure that potential threats are spotted early, and appropriate mitigation strategies can be applied before they lead to significant damage.

What is the role of accounting in risk management?

Accounting plays an important role in risk management by helping to identify, measure, and report risks, ensuring that financial and operational risks are accurately tracked and controlled.

How does Islamic finance risk management differ from conventional finance?

Islamic finance risk management encompasses the principles of Sharia law, which includes ensuring that all financial transactions are free from interest (riba), excessive uncertainty (gharar), and investments in prohibited (haram) activities, in addition to standard financial risk management techniques.