Implementation Of Governance, Risk Management And Compliance System In Corruption Prevention On The State Financial Expenditure Side

Abstract

Currently, the Corruption Eradication Commission has made various efforts to prevent corruption. However, corruption still often occurs and even tends to increase, especially corruption in the management of state finances on the state expenditure side, which is detrimental to state  finances.  Corruption in the management of state finances on the state expenditure side often occurs in the process of procuring government goods and/or services and the use of the state budget, which is a manifestation of structural weaknesses in complex governance. This phenomenon is not merely a product of individual behavior, but also a systemic symptom rooted in systemic and institutional weaknesses. This dissertation explores the architecture of corruption using the Governance, Risk Management, and Compliance (GRC) approach, which provides a holistic perspective on the mechanisms for preventing corruption in the management of state finances on the state expenditure side. This research uses qualitative methods with primary and secondary data, as well as descriptive analysis based on Michael Rasmussen's theory of governance, risk management, and compliance systems. The research data was obtained through interviews, observations, and literature studies related to corruption cases involving state financial losses from the state expenditure side, as well as an analysis of corruption prevention models through the GRC perspective. The results of the study show that the prevention measures taken by the KPK based on the GRC perspective are quite good, but still not completely effective. This is evident from the fact that there are still similar cases of corruption in different ministries.  In terms of governance, governance principles are often violated, especially the principles of accountability and transparency. Therefore, it is necessary to improve governance and the application of good governance principles, not only in slogans but also in practice. The second issue relates to corruption risk management, where the risk of corruption has not been adequately controlled and mitigated. Therefore, it is necessary to develop corruption risk management as an early warning system so that corruption can be prevented early on with effective mitigation and control. Third is the issue of compliance systems, where violations of the Corruption Eradication Law often occur. For this reason, it is necessary to increase awareness and strengthen the integrity and capabilities of state financial managers, as well as the importance of role models from government agency leaders in these public organizations.