Enterprise risk management

Entity context

Filter the SSoT by holding company or subsidiary

Methodology & taxonomy

The rules behind every score, control, and threshold in this register. Anchored to ISO 31000:2018, COSO ERM (2017), and Indonesian regulators (OJK / BSSN / UU 27/2022 PDP).

1. Risk taxonomy

Strategic
Threats to long-term objectives, market position, M&A, business model.
Financial
Liquidity, credit, market, capital adequacy, FX, accounting integrity.
Operational
Process failures, people, technology, outsourcing, third-party.
Compliance
Regulatory breaches against POJK, Kemenkes, BPOM, UU PDP, sectoral law.
Reputational
Stakeholder trust, media coverage, brand value, social licence.
Cyber
Confidentiality, integrity, availability of information assets (ISO 27005).

2. Control taxonomy

By function (when it acts)

Preventive
Stops the event from occurring. e.g. segregation of duties, MFA, training.
Detective
Identifies events that have occurred. e.g. SIEM alerts, reconciliations, audits.
Corrective
Restores state and limits damage. e.g. backups, IR runbooks, insurance.

By nature (where it lives)

Policy
Governance, procedures, codes of conduct, contracts.
Physical
Site access, CCTV, environmental controls, locked storage.
Logical
System / application configuration, IAM, encryption, monitoring.

Three Lines model (IIA 2020) is implied: 1st line owns the control, 2nd line oversees, 3rd line provides independent assurance.

3. Likelihood rubric (1–5)

Combines historical frequency and forward-looking probability per ISO 31000 §6.4.3.

#LevelQualitativeQuantitative anchor
1RareMay occur only in exceptional circumstances; no precedent in the group.<5% probability in 12 months · once every >5 years
2UnlikelyCould occur but not expected; isolated precedent in the industry.5–25% in 12 months · once every 3–5 years
3PossibleMight occur at some time; has happened in the group before.25–50% in 12 months · once every 1–3 years
4LikelyWill probably occur in most circumstances; recurring near-misses.50–80% in 12 months · once a year
5Almost certainExpected to occur; already materialising or systemic weakness.>80% in 12 months · multiple times a year

4. Consequence rubric (1–5)

Multi-dimensional. Use the worst-case applicable descriptor across dimensions (ISO 31000 worst-credible-case principle).

Financial

Ref · COSO ERM · ISO 31000 (% of group revenue / EBITDA)
#LevelQualitativeQuantitative anchor
1InsignificantAbsorbed by line budget.<IDR 250 M · <0.1% revenue
2MinorRe-forecast within entity.IDR 250 M – 2 B · 0.1–0.5%
3ModerateMaterial to entity P&L.IDR 2 – 10 B · 0.5–2%
4MajorGroup earnings warning.IDR 10 – 50 B · 2–5%
5CatastrophicThreatens going concern.>IDR 50 B · >5% revenue

Operational / Service

Ref · ISO 22301 BCM · clinical service continuity
#LevelQualitativeQuantitative anchor
1InsignificantNegligible disruption.<1 hour outage · single workstation
2MinorLocal workaround.1–4 h outage · single department
3ModerateService degraded for one entity.4–24 h outage · 1 site
4MajorMulti-site outage; SLAs missed.1–3 days · multiple sites
5CatastrophicGroup-wide service failure.>3 days · all entities

Compliance / Regulatory

Ref · POJK · UU 27/2022 PDP · BSSN · Kemenkes
#LevelQualitativeQuantitative anchor
1InsignificantInternal policy deviation.Self-reported, no regulator action
2MinorRegulator advisory letter.Teguran tertulis (written warning)
3ModerateAdministrative sanction.Denda administratif · pembatasan kegiatan
4MajorLicence restriction or PDP fine.Up to 2% annual revenue (UU PDP) · pembekuan izin
5CatastrophicLicence revocation, criminal exposure.Pencabutan izin usaha · pidana direksi

Reputational

Ref · COSO ERM · stakeholder trust
#LevelQualitativeQuantitative anchor
1InsignificantInternal awareness only.No external coverage
2MinorLocal complaint.Social media chatter <24 h
3ModerateTrade press coverage.Negative national news 1–3 days
4MajorSustained adverse coverage.National headlines >1 week · DPR scrutiny
5CatastrophicBrand damage, customer flight.International coverage · loss of social licence

Health & Safety (patient/staff)

Ref · Kemenkes · WHO patient-safety taxonomy
#LevelQualitativeQuantitative anchor
1InsignificantNo injury; near-miss.First-aid only
2MinorReversible harm.Outpatient treatment
3ModerateTemporary disability.Hospitalisation, full recovery
4MajorPermanent harm to ≥1 person.Permanent disability · sentinel event
5CatastrophicFatality or mass-casualty.≥1 death · multi-patient harm

Cyber / Data

Ref · BSSN · UU 27/2022 PDP · ISO 27005
#LevelQualitativeQuantitative anchor
1InsignificantContained anomaly.No data exposed
2MinorInternal data exposure.Non-sensitive data, <100 records
3ModeratePII exposure, contained.100–10k records · notifiable to OJK/BSSN
4MajorSensitive PII / health data breach.10k–1M records · UU PDP notification
5CatastrophicMass breach or systemic compromise.>1M records · ransomware on core systems

5. Risk score, level and heatmap

Inherent score
Likelihood × Impact before controls.
Residual score
Likelihood × Impact after controls operate as designed.
Low (1–7)
Green — within appetite, monitor.
Medium (8–14)
Amber — manage, watchlist.
High (15–25)
Red — escalate, treat or transfer.

6. Governance thresholds

Appetite
Strategic willingness to accept this category of risk (Low / Moderate / High).
Tolerance
Soft upper bound for residual score — variation that can be absorbed.
Limit
Hard breach threshold — exceeding it triggers escalation to the Risk Committee.

The three are not interchangeable. Appetite is strategic, tolerance is operational variance, limit is the line that must not be crossed.

7. Per-control effectiveness attribution

The inherent → residual delta is split across a risk's controls weighted by function:

  • Preventive — weight 0.5
  • Detective — weight 0.3
  • Corrective — weight 0.2

Preventive controls earn the largest attribution because they reduce likelihood at source. Detective controls reduce dwell time. Corrective controls limit consequence after the fact.

8. Indonesian regulatory anchors

POJK 18/POJK.03/2016
Manajemen risiko bagi bank umum.
SEOJK 21/SEOJK.03/2017
Manajemen risiko teknologi informasi bank umum.
POJK 1/POJK.05/2015
Manajemen risiko Lembaga Jasa Keuangan Non-Bank.
UU 27/2022 PDP
Perlindungan Data Pribadi — sanksi administratif s/d 2% pendapatan tahunan.
BSSN — Pedoman MR Keamanan Informasi
Sektor publik & Penyelenggara Sistem Elektronik.
Kemenkes / WHO patient-safety taxonomy
Klasifikasi insiden keselamatan pasien.

9. International frameworks referenced

ISO 31000:2018
Risk management — guidelines.
ISO/IEC 31010
Risk assessment techniques.
ISO 22301
Business continuity management — outage descriptors.
ISO/IEC 27005
Information security risk management.
COSO ERM 2017
Enterprise Risk Management — Integrating with Strategy and Performance.
IIA Three Lines Model 2020
Roles, accountability, assurance.