IFC and CRMS INDONESIA PARTNERING FOR IMPACT IN PARTNERSHIP WITH BUSINESS Facilitates the acceleration of good governance, risk management, compliance, and sustainability practices in Indonesia through innovative and creative approaches. LOCATION SECTOR TYPE OF ORGANIZATION Indonesia Service Private www.crmsindonesia.org “IFC C G T I CRMS I 2013 .O IFC .” D .A A , CRMS I F ABOUT CRMS INDONESIA Lack of robust corporate governance standards and practices, among management training for companies and risk management others, limits access to financing for Indonesian companies, which is professionals in Jakarta and Bandung. By 2016, it was a leading risk critical to accelerate economic growth and reduce poverty. In management service provider in Indonesia. Currently, CRMS addition, Indonesian corporate boards play a limited supervisory and Indonesia provides a diverse portfolio of training programs, including advisory role, including in governing and managing risks. Risk ISO 31000 series, CSA/RCSA, Risk Management Awareness Program, governance refers to the principles of good governance applied to the Risk Appetite and Risk Tolerance, Integrating Risk Management with identification, management and communication of risk throughout Business Performance, and other topics. CRMS has trained a total of the organization. It incorporates the principles of accountability, 16,361 participants across all sectors since its inception. As a testament participation, and transparency in establishing policies and structures to its commitment and dedication to risk management, CRMS to make and implement risk-related decisions. Indonesia was awarded the Best Risk Management Service Provider in 2014 and 2016 in IRM’s Global Risk Award1 held in London, UK. CRMS Indonesia (Center for Risk Management Studies) was founded in 2010 by three postgraduate students at Parahyangan Catholic Since 2018, CRMS Indonesia has begun to expand its services into University in West Java under the guidance of their coach, Dr. governance, compliance, and sustainability and aims to broaden its Antonius Alijoyo. It was founded on a simple idea and a genuine market outreach to Southeast Asia by 2020. To highlight the desire to contribute to advancing the knowledge and practices of risk expansion of its core business and emphasize its commitment to management in Indonesia. sustainability, starting in 2020 onwards, CRMS Indonesia will change its name to Center for Risk Management and Sustainability (from At first, CRMS Indonesia focused its service on providing risk Center for Risk Management Studies). CRMS INDONESIA’S Develop a holistic Build digital capabilities GROWTH ecosystem addressing to deliver services more STRATEGIES both the demand and e ectively while keeping supply side. the business processes In addition to cooperating with IFC, CRMS e cient, including: Indonesia also collaborated with other leading • Utilizing digital-based platforms to develop players in the field, such as ERM Academy, and disseminate training materials government institutions, and various universities • Applying integrated solutions for support in Indonesia. CRMS Indonesia also initiated the functions, including finance and accounting, establishment of several professional human resources management, etc. associations (e.g., Indonesia Governance Professional Association, Indonesia Risk • Establishing a subsidiary that will support Management Professional Associations, Institute CRMS Indonesia in building its system and of Compliance Professional Indonesia) while data architecture, covering areas such as maintaining an active involvement with data privacy, data analytics, cyber security, Indonesia’s National Agency for Standardization. and digital branding. 1 IRM’s Global Risk Awards are annual events organized by the Institute of Risk Management to recognize, honor, and celebrate individuals and teams that have made significant contributions and paved the way for innovation and excellence in risk. COOPERATION WITH IFC Building the capacity of local institutions is one of the primary and Eastern Europe. Going forward, CRMS Indonesia will continue objectives of IFC Corporate Governance projects, to ensure that its collaboration with IFC to build its capacity on environmental, corporate governance advisory services will be sustainable beyond social, and governance (ESG) issues as it broadens its core services IFC's engagement and to achieve greater market impact. In 2013, IFC into governance, compliance, and sustainability. Corporate Governance Project in Indonesia signed a cooperation agreement with CRMS Indonesia to build its capacity, develop new Using the IFC-SECO Partner Capacity Building Tool, a methodology training modules, and expand its services. designed to measure qualitative improvements in four components2 and sustainability prospects of IFC’s partner institutions, CRMS Since then, IFC has provided support to CRMS Indonesia to broaden Indonesia has grown significantly in all assessment components, its training modules to include enterprise risk governance, internal moving from below Novice/Novice to Qualified ratings since 2013. audit, and audit committee. With IFC’s support, CRMS Indonesia has CRMS Indonesia demonstrated the largest growth in its technical also delivered its training programs to other countries in East Asia capacity (with an increase of around 600%). (Vietnam and the Philippines), Africa (Nigeria, Kenya and Ethiopia), Technical Capacity Outreach Capacity 100% 100% 75% 75% 50% 50% 25% 25% 0% 0% L L None Novice Intermediate Qualified Expert Guru Genius None Novice Intermediate Qualified Expert Guru Genius E E Delivery Capacity Institutional Capacity 100% 100% 75% 75% 50% 50% 25% 25% 0% 0% L L None Novice Intermediate Qualified Expert Guru Genius None Novice Intermediate Qualified Expert Guru Genius E E PROGRESS : 2013-M -01 2017-J -05 2018-J -30 2 The Partner Capacity Building Tool consists of four assessments: Technical Capacity, Delivery Capacity, Outreach Capacity, Institutional Capacity. // IMPACT REPORT // BEFORE COOPERATION WITH IFC AFTER COOPERATION WITH IFC Number of full-time sta 3 14 Number of part-time sta 3 3 Number of full-time trainers 0 3 Number of part-time trainers 4 35 Number of training courses/modules 2 25 Annual revenue and profit N/A Both revenue and profit increased more than 100x in mid-2019 compared to the base year (prior to cooperation with IFC). NEW TRAINING PROGRAMS WITH IFC'S ASSISTANCE Direct engagement • Enterprise Risk Governance Master Class in Indonesia, Singapore, Malaysia, Thailand, Vietnam, Kenya, and Nigeria • Internal Audit Master Class • Audit Committee Master Class Indirect engagement Risk management benchmarking, practice sharing, and overseas workshops in Australia, USA, UK, Japan, Netherlands, Switzerland, Spain, Hungary, and Hong Kong. Growth in business lines / sectors / CRMS Indonesia was conducting CRMS Indonesia has begun to geographical areas training and workshops in Indonesia penetrate the global market; currently only. conducting benchmarking studies, training programs, and knowledge sharing on five continents on an annual basis. Growth in market segments CRMS Indonesia only served junior to CRMS Indonesia serves a wide range of mid-level professionals through customers through public and in-house public training programs. training programs. Its market segments have grown to include: 1. High level board members who are served through master classes, international benchmarking and workshop programs in Europe, Asia, America and Australia. 2. Mid-level professionals in both public and private sectors who are served through regular and in-house training programs, and later through competency assessment and certification. 3. Entry-level professionals who are served through digital platforms: e-learning, e-books, and e-competency assessments. BEFORE COOPERATION WITH IFC AFTER COOPERATION WITH IFC Evaluation Program N/A 1. Annual Survey: Survey of Risk Management Practices starting in 2016 and Survey of Governance, Risk Management, and Compliance (GRC) Integration Practices starting in 2019. The survey results are utilized to measure improvement in risk management and GRC integration practices, in order to provide feedback to CRMS Indonesia on how to improve its programs in terms of substance, quality, and delivery methods. 2. Case Studies Compilation: Collaborative e orts to facilitate and promote active knowledge sharing and networking among practitioners while advancing their risk management and GRC integration practices. Next steps Build digital capabilities, strengthen the business ecosystem, and continuous knowledge acquisition About IFC Corporate Governance Group Contact Us: The Group brings together sta from investment and advisory operations into a Kate Lazarus single, global team. This unified team advises on all aspects of corporate ESG Advisory Lead for Asia governance and o ers targeted client services in areas such as increasing board klazarus@ifc.org e ectiveness, improving the control environment, and family businesses Chris Razook governance. The Group also helps support corporate governance improvements East Asia and the Pacific and reform e orts in emerging markets and developing countries, while Corporate Governance Lead leveraging and integrating knowledge tools, expertise, and networks at the crazook@ifc.org global and regional levels. Leyal Savas East Asia and the Pacific Senior Corporate Governance O cer lsavas@ifc.org ifc.org/corporategovernance September 2019