Navigating Complexity of Risk Management Disclosure in the Energy Insurance Industry Using ISO 31000 Framework Analysis

Globalization has made the business environment more complex, with many corporations facing increasingly difficult challenges. Furthermore, some corporations place a higher focus on risk management than profit. However, risk management has continued to evolve over the years. Therefore, this study delves into the determinants influencing risk management disclosure (RMD) in energy insurance companies, addressing the complex requirements of risk and transparency. The research presents a new model and examines parameters such as profitability, leverage, liquidity, company size, and ownership structure—including public, institutional, and managerial ownership—within the framework of ISO 31000, moderated by the risk management committee. This study used a quantitative research approach to gather data from 2014 to 2023 for 133 observations through purposive sampling. The findings indicate that company profitability, leverage, liquidity, company size, and ownership structure—including public ownership and managerial ownership—have no positive effect on risk management disclosure (RMD), whereas institutional ownership has a positive impact on RMD. On the other hand, the risk management committee moderates the significant impact of public ownership, institutional ownership, and managerial ownership on RMD. This study underscores the importance of shaping risk management disclosures in the Indonesian insurance sector. This research contributes to a nuanced understanding of the factors driving RMD, offering valuable insights for stakeholders in the energy insurance industry.