STRENGTHENING RISK MANAGEMENT STRATEGY TO IMPROVE INTERNAL CONTROL EFFECTIVENESS IN MINISTRIES/AGENCIES IN INDONESIA

Abstract

This paper analyzes strategies to strengthen risk management in enhancing internal control effectiveness in Indonesian Ministries/Agencies. Although Government Regulation No 60 of 2008 mandates the application of the Government Internal Control System (SPIP), various challenges impede its effective implementation, including lack of human resource (HR) competence, weak risk culture, and limited use of technology. This study adopts a quantitative explanatory design using Structural Equation Modeling—Partial Least Squares (SEM-PLS), with a sample of 250 respondents from 30 institutions. The results indicate that ISO 31000—based risk management and SPIP have a significant impact on internal control effectiveness, while HR competence and organizational risk culture act as moderating factors. The paper contributes theoretically to public sector governance by proposing an integrated model and offers policy recommendations related to HR capacity building, digital governance, and strengthening risk-based accountability frameworks.