Risk Management for Non-Bank Financial Institutions

The Financial Services Authority (OJK) has issued Regulation No. 1/POJK.05/2015 on Implementation of Risk Management for Non-Bank Financial Institutions (“Regulation”) to deal with the complex risks arising in relation to developing Indonesia’s financial sector.[1]

The Regulation provides guideline for insurance companies, insurance broker companies, pension funds, and financing companies (collectively referred to as “Institutions”) to implement procedures and methods to identify, measure, monitor, and control risk, so called “Risk Management”.[2]