Enterprise Risk Management, Management Control Systems, and Digital Banking Transformation Analysis on the Evaluation of Sustainable Banking in Indonesian Banking

Abstract

Purpose: The aim of this study is to analyze the impact of enterprise risk management, management control system and digital banking transformation on the evaluation of sustainable banking in Indonesian banking. management control system. Methods: The data collected came from the results of a questionnaire completed by 281 respondents from 31 banks in Indonesia. The obtained data were then analyzed using PLS-SEM. The research findings suggest that enterprise risk management, management control systems and digital banking transformation have a positive and significant impact on the evaluation of sustainable banking in Indonesian banking. Results: The level of IT security control, whistleblowing system and the introduction of complaint management system in the management control system can have a significant impact on the assessment of Indonesian banking stability compared to previous studies. In the era of globalization and digitization, Indonesian banks need to focus more on IT operations and focus on stakeholder input and customer delight. Today information technology can spread good or bad information very quickly. Organizations that control IT and threaten customers' access and use will be more sustainable, as they will be able to take corrective actions more quickly and accurately to avoid consent to the information obtained. Conclusion: This study is a step towards building management control systems as a more comprehensive package to ease control of information technology developments in the banking industry through reliable information technology security, a strict complaint management system and an integrated whistleblowing system. adds up. Management control of stakeholder happiness and customer happiness.