PT Jamkrindo received two awards from the Governance, Risk, and Compliance (GRC) and Performance Excellence Award 2020 for its achievements in implementing GRC in its business and operational processes, as well as utilizing technology to enhance services to customers and business partners. This reflects the company's commitment to maintaining corporate sustainability through good governance.
Based on objective and independent assessments by the Evaluation Team and Jury, PT Jamkrindo received awards in the categories of The Best GRC for Compliance & Risk Management 2020 (Financial Service) with a 4-star rating and The Best Corporate Secretary 2020.
The awards were received by PT Jamkrindo’s Corporate Secretary, Abdul Bari, and Head of Risk Management and UMKM Rating Division, Management Consulting (PUKM) PT Jamkrindo, Ceriandri Widuri, at the Governance, Risk, and Compliance (GRC) and Performance Excellence Award 2020 event in Jakarta on Wednesday, July 29, 2020.
Separately, PT Jamkrindo's President Director, Randi Anto, stated that PT Jamkrindo is highly consistent in implementing Governance, Risk, and Compliance (GRC) in its operations to support good corporate governance.
“The success of GRC implementation is due to the strong commitment of the company’s management, risk awareness of Jamkrindo’s employees, adequate systems, compliance with regulations, effective internal controls, and information technology (IT) support. To identify risk profiles within the company's units, PT Jamkrindo has implemented the Risk Management Information System (SIMR) application,” he said.
Ceriandri Widuri, Head of Risk Management and UMKM Rating Division, Management Consulting (PUKM) at PT Jamkrindo, explained that all units at PT Jamkrindo routinely identify the company's risk profile every three months through the SIMR application.
“These risk profiles are reported by the risk management unit to the board of directors and all work units,” said Ceriandri.
She explained that the company identifies, assesses, manages, and monitors eight types of risks: strategic risk, liquidity risk, guarantee risk, market risk, reputation risk, legal risk, operational risk, and compliance risk.
To implement GRC, PT Jamkrindo has also adopted the Three Lines of Defense framework. The first pillar is technical work units (RTU), the second is the Risk Management and PUKM division, and the third is the Internal Audit Unit (SPI). These three pillars assist the board of directors in implementing risk management at the company.
“We also implement Business Continuity Management (BCM), which is a comprehensive management process that identifies potential and disaster impacts on the company’s operations, provides a framework to build resilience, and ensures effective response capabilities to protect stakeholder interests, reputation, brand, and value-creating activities,” said Ceriandri.
The company conducts business continuity testing at least once every two years. The test schedule is created by the work units (for the BC Plan) and the IT division (for the DR Plan). The results are then submitted to the Risk Management division. “The results of the test serve as input for improving the BCM implementation,” she added.
Regarding the Covid-19 pandemic, Ceriandri explained that the management has implemented several policies to mitigate the impact of Covid-19 on the company. First, the management has formed a Task Force by activating the BCM team across Indonesia.
“Because we have BCM PICs at the branch level, we activated them as the Covid-19 BCM Task Force this year, which is also called the Covid Rangers of Jamkrindo. We set three strategic steps: first, people protection, second, safe the bottom line, and third, safe business continuity. These are related to corporate safety and sustainability,” said Ceri.
PT Jamkrindo has also identified and prepared facilities and infrastructure to support BCM strategies in the current situation. There are many challenges and risks threatening the company. “Many UMKM have high non-performing loans (NPL) and are defaulting, which also threatens Jamkrindo's claims,” she stated.
Another breakthrough is the use of IT applications that significantly support company operations and services to customers in the new normal era. "With 50% of employees working from home, we face almost no obstacles. For administration and documentation, we use e-office; for monitoring activities, we use the SIPP (Guarantee Performance Information System); and for business support systems with partners, we use online systems. We also have a risk management information system (SIMR)."
"For HR, we have Employee Self Service and knowledge management, which allows us to monitor employee performance and productivity daily. We also hold weekly quizzes for employees to keep them productive and enhance their competencies during this new normal period,” Ceriandri explained.
With PT Jamkrindo joining the Insurance and Guarantee holding of PT Bahana Pembinaan Usaha Indonesia (BPUI), it will significantly strengthen the implementation of broader corporate governance to continue contributing to Indonesia’s economy.