The Influence of Leadership Capabilities and Risk Management Practice on Enterprise Resilience: Case Study on Financial Service Industry in Indonesia

Abstract

The challenges of the FS industry in Indonesia are to ensure that the industry remain resilient and able to anticipate the downside risks arising, including strengthening governance, risk management, and prudential principles. This study will determine the effect of leadership capability and risk management practice to enterprise resilience. The method in this study is a survey research method.  A questionnaire that was given to senior executives in the financial sector of Indonesia, including SVP/VP members of the board of directors. The results show that transformational leadership capability plays a role in the growth of business resilience and risk management practice. However, there hasn't been a lot of research done on the financial sector in Indonesia.  The empirical data from this study will contribute to our understanding of how risk management is related to enterprise resilience. These findings make it possible for management in the financial sector and policymakers to design strategies and a framework for policymaking that will foster enterprise resilience and assist the financial sector in navigating risky and disruptive business conditions successfully. This study's contribution will provide empirical data that broadens the environment for using the organizational resilience concept and theory of dynamic capacity in various organization types, like the financial industry, that operate in developing nations.