Agent /

Manajemen Company Principal

Profit Management Practices

Agency Theory Conflict

Profit
management Negative Audit of Financial
practices can be External Auditor
Effect Statement
minimized by
hiring external
auditors.
External Auditor is parties outside
the company that conduct an
audit of the company's financial
statements

High Competence Auditor

 Managerial

Institutional Institutional Investor is a shareholder who

collects funds from third parties to be
reinvested in other companies.

Government
Institutional investors are
responsible for their investments
Negative because the funds come from
Foreign third parties and therefore they
Effect
exercise strict control over the
company.

Audit of Financial High Quality

Statement Audit Report

External auditors with high competence can

Positive provide better audit quality so that institutional
Effect investors are not wrong in making decisions. The
existence of institutional investors makes
management improve performance so that
opportunities for management practices are
reduced.
 Risk Risk is a reasonably predic
the achievement of comp
interests of shareholders.

Risk represents the comp

financially and physically,
company's operating envi

Internal control's role is to control risks so

that they are within reasonable limits Internal Risk
acceptable to the organization. Control Management

Meet periodically with individuals who are primarily
responsible for internal control
Understand, and help set, the tone at the top
Discuss with management
Focus discussions on areas of greatest potential risk
Understand how management plans to assess
internal control
Understand the external auditors’ scope
Meet regularly with management
Understand how the process works
Understand the top risk management ha
Understand internal audit’s role in risk m
Work with the other board committees
oversight of key risks among board comm
The Turnbull Guidance

1. Development
of accepted 2. Implementation of
corporate accepted risk
policies for risk management policies
management through risk based
internal control system
capable of continuously
monitoring the corporate
internal and external risk
environment
 Risk is a reasonably predictable event / situation that can hinder 1. Risk Management
the achievement of company goals or pose a threat to the
interests of shareholders.

Risk represents the company's gap on adverse consequences, both Risk Management
financially and physically, as a result of decision making and the Unit
company's operating environment.

Piagam Satuan
Manajemen Risiko
Because risk cannot be eliminated so risk management is a
control measure so that the risk does not have a detrimental
impact on the achievement of company goals or the interests
of shareholders.

tand how the process works

tand the top risk management has identified
tand internal audit’s role in risk management and the extent
with the other board committees to allocate
ht of key risks among board committees

urnbull Guidance Role of BOD & BOC in Internal PT Jiwasraya's

2. Internal Control
Control & Risk Management

3. Periodic reviews of
the risk based internal 4. Annual reports of
2. Implementation of compliance on risk
accepted risk control system to
quality assure on management
management policies policies and effective
through risk based going effective
control of risk management
internal control system with reasons for any
capable of continuously organization wide risk
in a dynamic non-compliance
monitoring the corporate
internal and external risk environment
environment
Risk identification, which is a process to identify types of risks that are relevant and
potential to occur through the preparation of risk assessments

Risk measurement, which is a process for measuring the magnitude of impacts and
probabilities including establishing the criteria for impact and probability from the
results of risk identification

Risk management, which is a process to determine the efforts that can be made to
deal with potential risks

Risk monitoring, which is a process to monitor various factors that are suspected to
direct the emergence of risk

Evaluation, which is a review of the adequacy of the overall risk management

activities carried out in the company

Reporting and disclosure, which is the process for reporting the risk management
system implemented by the company and its disclosure to related parties