Bank Risk Assessment: Which Bank Is Better?

Banks manage risk as a whole so that people continue to trust this Institution. Risks must be managed to avoid the worst impacts that contain large costs. The purpose of this research is to of knowing the effect of the internal control system on the effecting of operational risk management in state-owned banks and private banks. The research design used is a hypothesis testing research of the influence of internal control system variables on operational risk management by using multiple linear regression analysis tools. This study also examines differences in employee perceptions of the two variables with several dimensions that exist between state-owned banks and private banks. The sampling method used primary data which was distributed through questionnaires to employees from banks in Jakarta and surrounding areas as well as those outside Jakarta. The findings show that the internal control system significantly influences the implementation of operational risk management. This research also shows that there are differences in the perceptions of employees of state-owned banks and private banks on the internal control system variables on the implementation of operational risk management and their dimensions.