The Process of Controlling and Monitoring Operational Risk Using COSO ERM at PT. Agro

Abstract

Agro is a growing company engaged in the plantation sector. As a growing company, companies need to improve company performance by implementing a risk management process based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) to reduce disruption to daily operational activities, and companies can allocate resources more effective and efficient so that company goals can be achieved. To implement COSO ERM effectively, companies must conduct a thorough coordination and integration process in their operational activities. This qualitative study aims to analyze the application of COSO ERM in controlling operational risk in the trading division at PT. Agro. The risk management process carries from the risk identification process to the monitoring process. The results of this study indicate that the trading division has significant risks in its primary activities. Hence, it is necessary to carry out a monitoring process and appropriate actions to control these risks not to harm the company.

Keywords

• coso erm
• enterprise risk management
• operational risk
• risk management