RISK MANAGEMENT OF DOMESTIC REMITTANCE BUSINESS (CASE STUDY: KARAWANG POST OFFICE)

• Main Author: NAZALA RAMADHANI - 29116138, AULIA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25923
• Institution: Institut Teknologi Bandung

Indonesia is a large archipelago country and its people are spread from Sabang to Merauke. So that migration of the population can occur from densely populated island to sparsely populated island or from rural to urban area. It will affect the transfer of funds from these areas because many people who work in urban areas will send funds to rural areas. It encourages PT. Pos Indonesia to provide money transfer services, especially for those who have not or do not have a bank account. Money transfer business is often referred as remittance. The global remittance condition estimated by the World Bank will grow of 3.4 percent in 2018. In Indonesia area itself, remittance conditions indicate an increasingly fierce competition. This trend becomes an opportunity and challenge for PT Pos Indonesia as a provider of nonbank financial services to provide maximum services to sustainable and compete with other similar businesses. Based on interview with headquarter office known that remittance business is often experience some problems and uncertainties from both the internal and external environment of the business. <br /> <br /> <br /> Data from the remittance division shows that the fraud cases have happened in service office level during 2017. The highest fraud was happened in Karawang Post Office because the fictitious transaction through domestic remittance has been done by the employee in one of branch office under Karawang Post office supervision. The existence of this case makes the whole leader of the office should be more careful and need risk management analysis to prevent the similar or other cases happened in the future. So that the research is done to know, analyze, and mitigate the possible risks of domestic remittance business at Karawang post office. <br /> <br /> <br /> To solve the business is used conceptual framework from ISO 31000:2009 regarding risk management process. It consists of risk identification, risk analysis, risk evaluation, and risk mitigation. To identify the risk was used some methods such as: SWOT analysis, reference from other risk, observation, interview, and brainstorming. The analysis to measurement of risk is using Analytical Hierarchy Process (AHP). <br /> <br /> <br /> The result of analysis shows that operational risk is highest risk with the eigenvalue of 0.299 and consists of 9 risk factor such as not comply with SOP, wrong payment, transaction authorization, notification of prima remittance, insufficient inventory, fraud action, omission/lack of supervision, IT infrastructure, and security system hacking. <br />