IMPLEMENTATION OF RISK MANAGEMENT AND ITS EFFECT ON GOOD COOPERATIVE GOVERNANCE AND COOPERATIVE PERFORMANCE

Sugiyanto, Sugiyanto and Andriani Rahayu, Anggi (2017) IMPLEMENTATION OF RISK MANAGEMENT AND ITS EFFECT ON GOOD COOPERATIVE GOVERNANCE AND COOPERATIVE PERFORMANCE. Proceeding: The 5th Gadjah Mada International Conference on Economics and Business, 5. p. 24. ISSN 2548-7965

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Abstract

Risk management in Indonesia’s cooperative organization is still rarely implemented, and most of cooperative managers still view that risk management is only implemented for large-scale enterprises. As a form of responsibility of cooperative management (agent) to members as an owner of cooperative organization (principle), cooperative management must be operated by good cooperative governance and cooperative performance. The purposes of this study are to implement and identify risk management especially in saving and loan cooperative, and the final study to test and prove empirically about the directly and indirectly effect of implementation of risk management in cooperative organization on good cooperative governance and cooperative performance. The research method of this study use descriptive quantitative analysis, population in this study is smaller than 100, so saturation sampling technique used in this study, the size of population are 73 persons consist of board of directors, supervisors, manager, administrators, and members of the cooperative, primary data needed in this study by using survey method conducting questionnaires and structured interviews. This study uses a statistical approach by using path analysis so that it can be known the amount of direct and indirect effect between independent variables and dependent variable. The result of this study shows that it can be identified two categories of risks that are minor and insignificant risks. Minor risk includes credit risk and strategic risk, and insignificant risks remaining of six risks include market risk, liquidity risk, operational risk, legal risk, reputation risk and compliance risk. Result of this study based on statistical analysis indicate that the magnitude directly effect of implementation of risk management on cooperative performance by correlation coefficient (r) = 0,053 insignificant effect, the effect of implementation of risk management on good cooperative governance by correlation coefficient (r) = 0,209, significant, and the effect of good cooperative governance on cooperative performance by correlation coefficient (r) = 0,576, significant. Indirectly, implementation of risk management effect on cooperative performance through good cooperative governance as an intervening variable by correlation coefficient (r) = 0,346, significant. The conclusions of the study indicate that directly there is not effect of implementation of risk management on cooperative performance, but there is effect of implementation of risk management on good cooperative governance and good cooperative governance has effect on cooperative performance. Indirectly, Cooperative performance is not influenced by implementation of risk management, but influenced by implementation of risk management through good cooperative governance as an intervening variable.

Item Type:	Article
Uncontrolled Keywords:	implementation of risk management, good cooperative governance, cooperative performance
Subjects:	PROCEEDING
Divisions:	DOKUMEN IKOPIN
Depositing User:	SE Asep Hermawan
Date Deposited:	10 Dec 2019 04:02
Last Modified:	22 Oct 2021 03:57
URI:	http://repository.ikopin.ac.id/id/eprint/11

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