Risk Assessment of MSME Credit Process Digitalization Program of PT Bank XYZ West Sumatra Region

Abstract

The economic development of Micro, Small Medium Enterprise (MSMEs) cannot be separated from the real performance faced by most businesses, especially micro, small and medium enterprises in Indonesia. The most prominent is the low level of productivity, added value, and product quality. Despite this, MSMEs provide employment for the majority of Indonesians. The contribution of MSMEs in national output is still categorized as low. The factor that causes the low contribution of MSMEs in producing low output of goods and services is the type of decision-making that is fast and does not consider other factors at a later date. The decision-making of MSME entrepreneurs who use intuition rather than normal business calculations results in decisions being made quickly and the execution of these decisions takes a short time. In order to build the excellence of MSMEs by providing additional capital that is the right amount and the right use, PT Bank XYZ developed a digital credit analysis that provides a comprehensive and thorough credit analysis, one of which is to reduce the risk of default. The research aims to Analyze the risk of AAKD in the speed of microcredit analysis, Analyze AAKD on the accuracy of PKM microcredit analysis and Formulate policies to be able to improve the AAKD system. Data analysis using House of Risk which consists of House of Risk stage 1 and stage 2. The results showed that in the first stage of the house of risk there were 30 causes of risk, and three dominant risks were obtained, namely errors in granting credit, credit process errors and cost changes. After obtaining the dominant risk causative agent, the second stage of the House of Risk is carried out, namely mitigation steps. Mitigation steps that can be taken by Bank XYZ in order, namely Improving communication both internally and externally, creating a regular HR education schedule, Consistent in the implementation of education, Increased supervision in monitoring HR performance, especially the credit section, Evaluating the work of the credit section and related sections and Preventive errors in the submission and credit process. Keywords: MSMEs, Bank XYZ, House of Risk, AAKD, Risk Management, Mitigation