Business Risks, Corporate Governance, Financial Stability, and Ethical Challenges: Lessons from Bank Century and Enron Cases explores the complex relationship between business risks, corporate governance, financial stability, and ethical responsibility through an in-depth analysis of two landmark corporate scandals: Bank Century in Indonesia and Enron in the United States. The book examines how weaknesses in governance structures, ineffective risk management, regulatory failures, and unethical business practices can trigger financial crises, erode public trust, and threaten economic stability. By analyzing issues such as liquidity risk, solvency risk, systemic risk, moral hazard, accounting fraud, regulatory arbitrage, and supervisory shortcomings, the authors provide valuable insights into the causes and consequences of organizational failure. Through theoretical discussions, case studies, and practical perspectives, this book highlights the critical importance of transparency, accountability, ethical leadership, and robust governance frameworks in building resilient organizations and sustainable financial systems. Designed for students, academics, policymakers, and business professionals, this work serves as a comprehensive reference for understanding contemporary business risks and developing effective strategies to prevent future corporate and financial crises.
Preface v
Table of Contents vii
Bank Failure, Systemic Risk, and State Intervention: A Case Study of
Bank Century in Indonesian Financial Stability Literature
Latifa Rania, Sapto Wasono Soebagio, Driana Leniwati 1
Governance Breakdown in the Bank Century Bailout: Examining
Regulatory Risk and Supervisory Failure
Cahya Ardie Firmansyah, Sapto Wasono Soebagio, Driana Leniwati 13
Business and Financial Risks from a Governance and Systemic
Risk Perspective: A Case Study of Bank Century
Ardiansyah, Sapto Wasono Soebagio, Driana Leniwati 21
The Weaknesses of Internal Supervision and Its Impact on Liquidity
Risk: An Evaluation of the Century Bank Rescue Case
Maulidya Nisa’ul Karimah, Sapto Wasono Soebagio, Driana Leniwati 25
The Enron Scandal of 2001 – A Failure of Corporate Governance,
Accounting, and Ethics
Noni Oktavianti, Sapto Wasono Soebagio, Driana Leniwati 33
Enron’s Accounting and Financial Manipulation 2001
Mega Hi Sawedy , Sapto Wasono Soebagio, Driana Leniwati 45
Weaknesses of Internal Controls and Financial Reporting Risks in the
Enron Scandal (2001)
Bagus Angan Brasilio, Sapto Wasono Soebagio, Driana Leniwati 53
Impact, Legal Process, and the Legacy of Reform: The Enron
Scandal as a Turning Point in Global Corporate Governance
Ferdiliansyah, Sapto Wasono Soebagio, Driana Leniwati 65
Kasus Fraud Emirsyah Satar di Garuda Indonesia: Analisis
Manajemen Risiko, Corporate Governance, dan Pengendalian Internal
Adel Hikam Arif, Sapto Wasono Soebagio, Driana Leniwati 79
Financial Statement Transparency and Its Implications for Business
Risk: A Case Study of PT Garuda Indonesia 2018
Budiansyah, Sapto Wasono Soebagio, Driana Leniwati 89
Transformation and Recovery of PT Garuda Indonesia’s Performance
After the Covid-19 Pandemic: Business Restructuring, Efficiency,
and Sustainability
David Gunawan, Sapto Wasono Soebagio, Driana Leniwati 101
Background and Chronology of the Wirecard Scandal: Financial
Fraud, Corporate Collapse, and the International Regulatory Response
Dinar Nurhayati, Sapto Wasono Soebagio, Driana Leniwati 115
The 2020 Wirecard Scandal and the Crisis of Trust in the Modern
Fintech Industry
Eko Irianto, Sapto Wasono Soebagio, Driana Leniwati 123
Audit Failure, Financial Fraud, and Systemic Risk: Lessons From the
Wirecard Ag Collapse
Devo Sucita Lokiman, Sapto Wasono Soebagio, Driana Leniwati 135
Lessons from Wirecard for Financial Supervision and Fintech Reform
Deni Okpriyanto, Sapto Wasono Soebagio, Driana Leniwati 143
Liquidity Risk and Financial Governance on Jiwasraya’s Case and Its
Impact on Stability of the Life Insurance Industry
Bangun Richad Busana, Sapto Wasono Soebagio, Driana Leniwati 151
Systemic Risk and Reputation in the Jiwasraya Case
Ria Yunita, Sapto Wasono Soebagio, Driana Leniwati 159
Risk Analysis and Risk Management in State-Owned Insurance: A Case
Study of PT Asuransi Jiwasraya
Prisma Rohman Wardana, Sapto Wasono Soebagio, Driana Leniwati 165
Business and Financial Risks of Personal Data Breaches: A Case
Study of Tokopedia 2020 Wiendi Ratnasari, Sapto Wasono Soebagio, Driana Leniwati 173
Analysis of the NIST Cybersecurity Framework (CSF) in Assessing
Data Security Risks and Digital Governance Challenges in Tokopedia
Shobiq Zainudin, Sapto Wasono Soebagio, Driana Leniwati 183
Cybersecurity Risk, Reputational Damage, and Regulatory Impact:
Lessons From The Tokopedia Data Breach
Taufan Hariono, Sapto Wasono Soebagio, Driana Leniwati 191
Integrating Cybersecurity Risk into Enterprise Risk Management:
Lessons from Tokopedia
Setiaji Zaeni Miftahulbowo, Sapto Wasono Soebagio, Driana Leniwati 203
Business Risks Faced by SMEs in the Digital Era
Amadou Diallo, Sapto Wasono Soebagio, Driana Leniwati 213
Operational Risks management in Business Organization
Ishrat Atta, Sapto Wasono Soebagio, Driana Leniwati 227
The Role of Digital Accounting in Reducing Financial Risk and
Operational Costs among SMEs in Indonesia
Alhassane Diallo, Sapto Wasono Soebagio, Driana Leniwati 235
