Enterprise Risk Management Implementation for Digital Banking During Covid-19 Partial Lockdown In Indonesia

Abstract

To explore the detail of operational risk faced by digital banking during the Covid-19 pandemic in Indonesia, including the highest Delta variant outbreak in the worldwide; and at the same time, to explore the most efficient and effective strategies to minimize the operational risk. This research uses qualitative methods, namely interviews and documentation through public social media.  Digital banking did not use innovative strategies to overturn and tackle the existing strategies before the pandemic occurred, and the banking sector tended only to update the strategies by strengthening, maximalising and optimalising facilities due to the increasing usage of mobile and internet banking. Due to the Covid-19 pandemic, this research has tended to utilise online interviews through social media with less meetings in person meaning there is a lack of information about the gestures and signal of respondents. Operational risk defines deeper innovative strategies to tackle the larger and wider scope of implementation digital banking in Indonesia. The banking needs to optimise the updating system through empowering and strengthening how it tackles the bigger operational risks thar come with bigger volume and the same operational risk patterns in the Indonesian context. Society could be enlightened on the best way of engaging in working from home and working from the office for the purposes of social distancing to avoid spreading Covid-19 thus reducing the risk of death. Using qualitative research methods, the identification and measurement of operational risk, and how to avoid it, from the perspective of Enterprise Risk Management, when implementing digital banking in the era of the Covid-19 pandemic as a result of implementing a partial lockdown in Indonesia.