Integrating Governance, Risk and Compliance Model for the Sustainable Performance of Hajj Fund Management Agency in Indonesia

Abstract

Purpose – The purpose of this paper is to explain the integrated governance, risk and compliance (GRC) model for the sustainable performance of hajj fund management agency in Indonesia. The problem that occurs is related to the waiting period caused by the gap between the hajj quota provided by the Saudi Arabian government and the number of hajj registrants in each country. In addition, there is another problem, namely the cost of hajj departure which is has been getting progressively expensive. Thus, in the implementation of Hajj Fund Management Agency, synergy is needed between good corporate governance, risk management, and compliance with applicable regulations (Compliance) to realize Hajj Fund Management Agency in accordance with the mandate of the Act.

Design/methodology/approach – This study uses the Analytical Network Process is a qualitative method by combining literature studies, valid data, in-depth interviews and/or discussions with regulators, government, sharia experts, capital market practitioners to strengthen arguments.

Findings – The results of the study show that, the role considered important by GRC in managing the organization is not effective if it is silo in nature, integration is needed both internally and between systems. An integrated GRC Framework is needed to achieve principled performance by combining the GRC frameworks from OCEG and ISO so that it will provide added value to the company. With the integration of GRC above, it is hoped that the implementation of each component will be more efficient and effective and able to support the development and sustainable of BPKH (bahasa: Badan Pengelola Keuangan Haji) as an institution that has high credibility and provides value for the people.

Research limitations/implications – The paper can act reference for regulator, sharia banks, practitioner and hajj fund management agency another country who is interested to know how to implement the GRC frameworks for facing the Saudi Vision 2030.

Originality/value - To the best of the author’s knowledge, this is the first paper trying to introduce the integrated GRC frameworks concept for sustainability performance in Hajj Fund Management Agency in Indonesia.