Tata Kelola Risiko dan Kinerja Bank: Peran Mediasi Risk-taking Behavior

Banking is an industry that has riskier activities than other industries, so risk governance is an important factor that must be considered to maintain optimal performance. This study aims to examine the effect of risk governance on banking performance mediated by risk-taking behavior. The research sample was determined using a purposive sampling method from all banks listed on the Indonesia Stock Exchange for the 2018-2023 period which consist of 44 banks (264 firm-sample observations). Hypothesis testing conducted using panel data regression shows that a good risk governance has an impact on banking performance because it can suppress risk-taking behavior. This result is reinforced by the increasingly low risk-taking behavior during the COVID-19 period. Taking as a whole, the results of this study highlight the importance of the Financial Services Authority's regulation on the implementation of risk management to encourage prudent risk-taking.