Quality based credit risk mitigation for bank performance enhancement: empiric study at Indonesia bank
Purpose- Risk Mitigation is a risk management system for company performance enhancement. Somehow, there is an ongoing controversy over whether risk mitigation inherently enhances business performance. The aim of this paper is to settle the controversy, and provide insights roles of risk mitigation on corporate strategy. Design/methodology/approach – Author examined application of risk mitigation at an Indonesia Bank, which the company is using Lean Six Sigma, based on responses from 112 credit analysts and database of company performance indicators. This examination will showing at the end relationship between implication of Lean Six Sigma at credit risk mitigation system and unit banks performance. Findings – This paper provide research result that Quality Based Credit Risk Mitigation which is risk mitigation using Lean Six Sigma will enhance company performance through improve credit quality and credit process efficiency. Research Limitation – This research has limitation on scope of work. It was done at 112 business unit at one bank, in reason the wish gain information is categorized as confidential at each of company. Next future research should be doing at companies at same industries or different industries. Practical implication – The new concept is Quality Based Credit Risk Mitigation (Mitigasi Risiko Kredit Berbasis Kualitas - MRKBK). MRKBK is credit risk mitigation using Lean Six Sigma as guidance to enhance company performance by increasing credit quality and minimize credit process time. It was proven increasing company performance through improve quality of process and products. The result will give better value to company performance, especially banking area, which has interest on operational performance and strategic management. Social Implication – This research has social implication to increase banking credit facility for industry and society. The credit financing, at the end, could improve economic growth of nations. Originality/value – The study described in this paper is unique in establishes a statistical valid relationship between credit risk mitigation, Lean Six Sigma and bank performance. Paper type Research paper
Year of publication: |
2014
|
---|---|
Authors: | AVIENI, Nini |
Published in: |
Theoretical and Applied Economics. - Asociaţia Generalā a Economiştilor din România - AGER. - Vol. XVIII(2014).2014, 8(597), p. 67-90
|
Publisher: |
Asociaţia Generalā a Economiştilor din România - AGER |
Subject: | lean six sigma | credit risk mitigation banking | quality management | implication strategic management |
Saved in:
freely available
Saved in favorites
Similar items by subject
-
Avieni, Nini, (2014)
-
Chiarini, Andrea, (2014)
-
Lean six sigma project management : a stakeholder management perspective
Sunder M., Vijaya, (2016)
- More ...
Similar items by person