Integration of Risk Management and Organizational Strategy in Non-Profit Institutions: A Case Study of the Implementation of COSO ERM 2017 at the Raden Fatah Cilacap Foundation

Abstract

This study aims to analyze the integration of risk management and organizational strategy in a non-profit educational institution through the implementation of the COSO Enterprise Risk Management (ERM) 2017 framework at the Raden Fatah Foundation in Cilacap. This study uses a qualitative approach with a case study design. Data were collected through in-depth interviews with key stakeholders of the foundation, namely the chairman, head of human resources, and treasurer, supported by document analysis and field observations. The results indicate that the Raden Fatah Foundation has implemented risk management practices that are substantively aligned with the components of COSO ERM 2017, particularly in aspects of governance and organizational culture, strategy formulation, financial management, and human resource management. However, this implementation is still informal and has not been systematically documented in the form of structured ERM policies and procedures. Risk considerations have been integrated into strategic decision-making, especially regarding resource allocation, program development, and organizational sustainability, although not yet supported by a risk map, risk appetite determination, or formal risk reporting mechanism. This study provides an empirical contribution to the development of risk management literature in educational non-profit institutions by demonstrating that the COSO ERM 2017 framework can be contextually and incrementally adapted to suit the characteristics of the organization. The novelty of this study lies in revealing the implicit yet functional integration between risk management and organizational strategy in the context of educational non-profit foundations, which can serve as a basis for strengthening institutional governance and sustainability.