THE INFLUENCE OF RISK MANAGEMENT AND INTERNAL AUDIT APPLICATION ON THE RISK OF NON-LOOKING LOANS AT BANCO NACIONAL DE COMERCIO DE TIMOR LESTE

The purpose of this study is to provide empirical evidence of the partial effect of the implementation of risk management and internal audit variables on the risk of bad credit at BNCTL. The population in this study were all 123 BNCTL Credit Analysis Managers and Staff. The samples used in this study were 123 BNCTL Credit Analysis Managers and Staff, using a census sampling technique, collecting data using questionnaires distributed as many as 123 and questionnaires that could be used as many as 70 and statistical analysis tool using multiple linear regression analysis. The results of the first test study show that the Application of Risk Management has a Significant Effect on the Risk of Bad Credit in Managers and Staff of BNCTL Credit Analysis. This means that the better the implementation of risk management, the BNCTL will be more efficient and effective in reducing the risk of bad credit customers. Thus, the implementation of banking risk management plays an important role in the effectiveness or minimization of bad credit risk. It is hoped that the risk management implemented by the BNCTL will assist in reducing the risk of bad loans. This is shown by the obtained t-count value of 5,817 greater than the t-table of 1,995, with a significant level of 0,000 less than the error tolerance of 0.05. While testing the second hypothesis, Internal Audit also has a significant effect on Bad Credit Risk. This shows that the better BNCTL implements internal audit, the more efficient and effective the risk of bad loans can be and can be controlled properly. This is indicated by the t-count value obtained of 2,268 which is greater than the t-table of 1,995, with a significant level of 0.027 which is smaller than the 0.05 significance level. The results also show that the coefficient of determination or contribution (R square) of the Variable of Application of Risk Management and the Variable of Internal Audit to the Risk of Bad Credit is 0.394 or 39.4%, meaning that the Risk of Bad Credit can be explained by the Variable of Application of Risk Management and Internal Audit of 39.4% and the remaining namely (100% - 39.4%) = 60.6% Bad Credit Risk, influenced by other variables not examined in this study.