Online Banking Implementation: Risk Mapping Using ERM Approach

  • Mochamad Aji Jaya Sakti Institut Pertanian Bogor
  • Noer Azham Achsani Institut Pertanian Bogor
  • Ferry Syarifuddin Bank Indonesia
Keywords: Risk, Banking, Online Banking, ERM

Abstract

The implementation of online banking in Indonesia is in line with the increasing of mobile device users who have become a part of people’s lifestyle, hence online banking offers easiness to access on banking services. This study is to examine risk mapping on the implementation online banking using ERM approach, including risk mitigation strategies for identified risks. This research was conducted at XYZ Bank who has implemented online banking. The results of this study find 55 potential risks. Some of it identified risks related to bank system security such as vulnerability to viruses, malware, hacking, also access information by an unauthorized person. Risk mitigation strategies applied by XYZ Bank is mostly done by managing the risk because the implementation online banking is still on the development process, and the Bank remains optimistic with the future prospect of online banking by staying with government regulations.

References

Bahl, S. (2012). E-Banking: Challenges & Policy Implications. Proceedings of “I-Society 2012” at GKU, 1–12.

Bank Indonesia. (2016). Financial Technology (FinTech) “Analisa Peluang Indonesia dalam Era Ekonomi Digital dari Aspek Infrastruktur, Teknologi, SDM, dan Regulasi Penyelenggara dan Pendukung Jasa Sistem Pembayaran. Temu Ilmiah Nasional Peneliti 2016 – Kemenkominfo, 1–31

Godfrey. (1996). Control of Risk a Guide to The Systematic Management of Risk from Construction1.pdf. (n.d.).

Cormican, K. (2014). Integrated Enterprise Risk Management : From Process to Best Practice. Modern Economy, (April), 401–413.

COSO-ERM. (2004). Enterprise Risk Management — Integrated Framework, 3(September), 1–16. https://doi.org/10.1504/IJISM.2007.013372

Darmawi. (2006). Manajemen Risiko. Edisi ke-10. Jakarta : Bumi Aksara.

Djohanputro, B. (2008). Manajemen Risiko Korporat. Pendidikan dan Pembinaan Manajemen. Jakarta.

Diversitas, K. I. (2008). Tinjauan pustaka, 5–20.

Eistert, T., Deighton, J., Marcu, S., Gordon, F., & Ullrich, M. (2013). Banking in a Digital World. AT Kearney, 23. Retrieved from http://www.atkearney.de/financial-institutions/ideas-insights/featured-article/ /asset_publisher/4rTTGHNzeaaK/content/banking-in-a-digital-world

Baldwin, A., Shiu, S. (2010). Managing Digital Risk Trends, Issues and Implications for Business. (n.d.).

Ndlovu, I., & Sigola, M. (2013). Benefits and Risks of E-Banking: Case of Commercial Banking In Zimbabwe. The International Journal Of Engineering And Science, 2(4), 34–40. Retrieved from http://www.theijes.com/papers/v2-i4/part. (2)/G0242034040.pdf

Omariba, Z. B., Masese, N. B., & Wanyembi, G. (2012). Security and Privacy of Electronic Banking. International Journal of Computer Science Issues, 9(4), 432–446. Retrieved from http://ijcsi.org/papers/IJCSI-9-4-3-432-446.pdf

Osunmuyiwa, O. (2013). Online Banking and the Risks Involved, 5(2), 50–54.

Sarma, G., & Singh, P. K. (2010). Internet Banking : Risk Analysis and Applicability of Biometric Technology for Authentication. International Journal of Pure and Applied Sciences and Technology, 1(2), 67–78.

Zanoon, N., & Gharaibeh, N. K. (2013). The Impact of Customer Knowledge on the Security of E-Banking. International Journal of Computer Science and Security (IJCSS), 7(2), 81–92. Retrieved from http://www.cscjournals.org/library/manuscriptinfo.php?mc=IJCSS-862
Published
2018-01-31
How to Cite
Jaya Sakti, M. A., Achsani, N., & Syarifuddin, F. (2018). Online Banking Implementation: Risk Mapping Using ERM Approach. Buletin Ekonomi Moneter Dan Perbankan, 20(3), 279-306. https://doi.org/10.21098/bemp.v20i3.824
Section
Articles