ANTI BRIBERY MANAGEMENT SYSTEM (ABMS) IMPLEMENTATION IN GOVERNMENT ISTITUTION - MITIGATING BRIBERY RISK BY INTEGRATING ISO 31000 INTO ISO 37001

• Main Author: Dwi Sesantiningsih, Rika
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35742
• Institution: Institut Teknologi Bandung

Recently bribe has become big issues for many organization caused by its impact, start from financial loss until reputational damage that will ruin organization reliability. Triggered by motive, opportunity and rationalization, known as triangle of fraud, a perpetrator could execute bribery activities even involving its family member. Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) conduct operational management of upstream oil and gas activities based on Production Sharing Contract (PSC) run by hundreds oil and gas contractors known as Kontraktor Kontrak Kerja Sama (KKKS). The role start from plan until actual program and budget to achieve production, revenue and reserve target for the state. During performing its role and resposibility, SKK Migas not only interact with KKKS and stakeholder, but also with other parties such as vendor and outsourcing employee. In 2013 SKK Migas was experienced bribery cases that influence SKK Migas reputation. Considering its role and responsibility within oil and gas upstream industry that may exposed to bribery risk and its experience in bribery case, SKK Migas has been implementing anti bribery management system based on ISO 37001 since 2017. This system require optimum bribery risk assessment as reference to determine action to address bribery risk. By integrating ISO 31000 into ISO 37001, organization will be able to result risk assessment using ISO 31000 approach to produce optimum bribery risk assessment to mitigate the bribe risk. Optimal risk bribery assessment lead to optimal control to mitigate the risk, while incompleteness bribery risk assessment can make the decision of mitigating the bribery risk less meaningful. Further more risk is evolving, following organization changing, whereby organization must conduct periodic assessments of bribery risk at all levels and point and document the results. Action to address bribery risk in clause (6.1) will depend on risk bribery assessment in clause 4.5, whereby ISO 37001 require to conduct bribery risk assessment based on ISO 31000. SKK Migas has implemented risk management based on ISO 31000 earlier in 2015. Using an established system by integrating ISO 31000 into 37001 could support the implementation of anti-bribery management system to mitigate the bribery risk. SKK Migas begin the integration process by identifying point that vulnerable of bribery risk using business process approach, embeded in risk management process. Start from identifying area under deputy that vulnerable of bribery risk based on its business process, then drilldown the identification into point under each area using the samee business approach method. The identification then equipped by qualitative analysis about regulation related to the risk and organization objective that may impacted in the bribery risk occur. To mitigate bribery risk, SKK Migas using integration of ISO 31000 into ISO37001 that is executing risk management process consist of risk identification, analysis, evaluation and risk treatment. Based on identification result, risk is being analyzed and evaluated that will result in the needs of treatment to mitigate the risk. Risk treatment decision will depends on comparison result of risk assessment with risk appetite and cost benefit analysis. Based on this final project reserach, bribery risk assessment plays important role for the anti- bribery management system implementation. Action to address bribery will be much depends on bribery risk assessment result. After conducting bribery risk assessment and risk treatment, each function in SKK Migas will have reference about bribery risk within their function, existing control and risk treatment needed to mitigate the risk. Based on this reference the function will implement initiative that in the end will minimize the possibility of bribery occurrence. This reference also can be used as a consideration for decision making in performing their role and responsibility, including align their program and budget with those initiative. Considering the importance of bribery risk mitigation, this integration should be monitored to ensure that it will always bring optimal value for implementation of anti bribery managemen system. Some inicitiatives as a room for area of improvement need to be implemented to enhance the integration process.