PRACTICING RISK MANAGEMENT and ITS IMPACT TO BANKRUPTCY RISK(Descriptive Study of Retail Companies listed in IDX)

It is important to understand about risk management and apply it. This will enable us to know and prepare for any possible conditions that affect financial stability. In global market found that foreign competitors has competed domestic companies, the lack of preparation of risk has made big companies collapse. If the company can taking anticipate by implementing risk management properly, risk of bankruptcy can be minimized. This study aims to know and understand the risk management purposes to companies according with existing factors and avoid the risk of bankruptcy in companies. To collect the data about risk management and bankruptcy risk, financial statement and annual report data has been used to researched retail companies in Indonesia. The result shows the more high level of risk management assessment, the companies expected to have potentially healthy. The level of risk management assessment has good effect to avoid bankruptcy risk. Positive signal shown in risk management assessment analyses stimulate retail companies to have potentially healthy. Keywords: Risk Management Implementation, Bankruptcy Risk, Retail Companies, Risk Management Report.