The impact of ISO 31000 adoption on the performance of banking companies in Indonesia
The complexity and volatility of the banking sector highlight the need for an effective risk management framework such as ISO 31000:2018. This study analyzes the effect of ISO 31000:2018-based risk management implementation on the performance and value of banking firms in Indonesia, by assessing the...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2507222 |
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| _version_ | 1849733971002261504 |
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| author | Lilik Purwanti Iwan Triyuwono Ghozali Maski Devy Pusposari Aryo Prakoso Melinda Ibrahim |
| author_facet | Lilik Purwanti Iwan Triyuwono Ghozali Maski Devy Pusposari Aryo Prakoso Melinda Ibrahim |
| author_sort | Lilik Purwanti |
| collection | DOAJ |
| description | The complexity and volatility of the banking sector highlight the need for an effective risk management framework such as ISO 31000:2018. This study analyzes the effect of ISO 31000:2018-based risk management implementation on the performance and value of banking firms in Indonesia, by assessing the impact of three key components (principles, framework, and processes) on financial performance indicators. Using panel data from Indonesian banks (2019–2023) and path analysis, the study found that changes in ISO 31000:2018 implementation negatively impact ROE, with no significant impact on MtBV and ROA. The findings provide the first empirical evidence on the effectiveness of ISO 31000:2018 in an emerging market context, particularly the Indonesian banking sector, and provide practical implications for optimal risk management policies. This study contributes to the literature by uncovering the nuanced effects of risk management components on the sustainability and performance of banking firms in Indonesia. |
| format | Article |
| id | doaj-art-3ff707dfdc2043c3888ac01491927437 |
| institution | DOAJ |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-3ff707dfdc2043c3888ac014919274372025-08-20T03:07:55ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2507222The impact of ISO 31000 adoption on the performance of banking companies in IndonesiaLilik Purwanti0Iwan Triyuwono1Ghozali Maski2Devy Pusposari3Aryo Prakoso4Melinda Ibrahim5Department of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Economic Science, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaDepartment of Accounting, Universitas Brawijaya, Malang, IndonesiaThe complexity and volatility of the banking sector highlight the need for an effective risk management framework such as ISO 31000:2018. This study analyzes the effect of ISO 31000:2018-based risk management implementation on the performance and value of banking firms in Indonesia, by assessing the impact of three key components (principles, framework, and processes) on financial performance indicators. Using panel data from Indonesian banks (2019–2023) and path analysis, the study found that changes in ISO 31000:2018 implementation negatively impact ROE, with no significant impact on MtBV and ROA. The findings provide the first empirical evidence on the effectiveness of ISO 31000:2018 in an emerging market context, particularly the Indonesian banking sector, and provide practical implications for optimal risk management policies. This study contributes to the literature by uncovering the nuanced effects of risk management components on the sustainability and performance of banking firms in Indonesia.https://www.tandfonline.com/doi/10.1080/23311975.2025.2507222Risk managementgood governanceISO 31000:2018banking performancefirm valueFinance |
| spellingShingle | Lilik Purwanti Iwan Triyuwono Ghozali Maski Devy Pusposari Aryo Prakoso Melinda Ibrahim The impact of ISO 31000 adoption on the performance of banking companies in Indonesia Cogent Business & Management Risk management good governance ISO 31000:2018 banking performance firm value Finance |
| title | The impact of ISO 31000 adoption on the performance of banking companies in Indonesia |
| title_full | The impact of ISO 31000 adoption on the performance of banking companies in Indonesia |
| title_fullStr | The impact of ISO 31000 adoption on the performance of banking companies in Indonesia |
| title_full_unstemmed | The impact of ISO 31000 adoption on the performance of banking companies in Indonesia |
| title_short | The impact of ISO 31000 adoption on the performance of banking companies in Indonesia |
| title_sort | impact of iso 31000 adoption on the performance of banking companies in indonesia |
| topic | Risk management good governance ISO 31000:2018 banking performance firm value Finance |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2025.2507222 |
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