Audit Committee Characteristics and Risk Management: Moderated by Family Business

Risk management is a crucial aspect of implementing corporate governance for all companies. It can be used as a solution for managing the company’s uncertainty and preventing risks that could result in losses. Meanwhile, the audit committee is responsible for assessing how risk management is put into practice and the impact of family business within the company. This study seeks to examine how audit committee characteristics relate to risk management, with family business as a moderating factor. This study utilizes secondary data extracted form the annual reports of technology companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023 with the total sample consists of 50 selected through purposive sampling.
The study employed multiple linear regression analysis of the Moderated Regression Analysis (MRA) model using SPSS 26 statistical software. The final results indicate that audit committee characteristics do not significantly impact risk management, but family business is able to moderate the audit committee, as measured by the number of independent audit committee members on risk management. This study may produce even more interesting findings if the research data uses technology sector companies from other Asia-Pacific regions or uses different sector companies and different research timeframes.