THE IMPACT OF CORPORATE GOVERNANCE ON RISK DISCLOSURE OF BANKS LISTED IN INDONESIA STOCK EXCHANGE

Every company face many risks. To prevent an uncertain situation, risk management is very necessary to prevent and deal with the risks that will occur. With the existence of corporate governance, the supervisory aspects carried out by the board of commissioners can make a good risk management system. This research aims to analyze the impact of corporate governance on risk disclosure of banks listed in Indonesia Stock Exchange. The population used in this study is secondary data derived from annual reports of banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2010-2020. A sample of 24 companies with 264 annual reports of the total sample is obtained through the purposive sampling method and analyzed by using the SPSS. The analysis method used in this study is descriptive statistics, normality analysis, correlation analysis, and multiple regression analysis. The results of this study indicate that board independence and board size significantly affect corporate risk disclosure. It shows that the board understands and implements its responsibility as an independent party in monitoring, directing, and evaluating the company's corporate governance and strategic policy implementation and the greater size of the board can make the risk disclosure more transparent. This research has a small sample because there are some banks that did not disclose their annual report every year. However, this research provides information that will help the stakeholders in investment-related decision-making and this study analyzed the risk disclosure using the risk disclosure item based on the instrument from the newest COSO.