Rusdi H A M K A Lubis

The challenges of Islamic cooperatives are increasing due to instability,
uncertainty, and complexity as a result of current technological advances.
Conditions like this certainly have an impact on higher business risk exposure.
Facing this issue, the implementation of governance, risk management, and
compliance (GRC) is very important. These three aspects are interrelated so that
they must be integrated and harmonized to prevent conflict, and avoid things that
could harm the company due to non-compliance with agreed regulations, including
violations of sharia principles.
The purpose of this study is to analyze the influence of the Cooperative
Internal Supervisory Board, Sharia Supervisory Board, Risk Management and Good
Corporate Governance (GCG) on the Performance of Sharia Cooperatives in South
Tangerang City with the Governance, Risk Management, Compliance (GRC)
approach as a form of a combination of integrated forces in achieving the
objectives. Islamic cooperative.
Methodologically, this type of research is a descriptive analysis based on
quantitative data with indicator testing using the Partial Least Square (PLS)
method which produces variable constructs and indicators which are then formed
formatively to show a causal relationship, while the population of this study is 54
officials from 9 institutions. Islamic cooperative in South Tangerang City,
sampling using the Simple Random Sampling technique of 35 cooperative officials.
The results showed that the role of the internal supervisor, the role of the
Sharia Supervisory Board, the implementation of risk management had a
significant positive effect on performance, but on the contrary, there was no
significant positive effect if GCG mediated the relationship between the role of the
internal supervisor, the role of SSB and the implementation of risk management
and performance. This shows that the governance of sharia cooperatives needs to
be addressed, however, the role of Islamic cooperatives is undoubtedly in
empowering the poor, supporting micro-businesses, and serving those that are not
affordable by banks.
The findings of this dissertation are in line with and reinforce the thinking of
George R Terry (1978), Lyndall F. Urwick (1983), and Stephen P Robbins (2017)
who state that supervision is a process of monitoring the development of activities
to ensure that the work process runs as planned of course with continuous
evaluation. sustainable to achieve good company performance. This research is also
in line with Ahmed (2011) stating that ‚SSB plays a major role as the gatekeeper
for Sharia implementation and compliance, as well as reviewing and assisting
product development to ensure Sharia compliance. The results of this study are in
line with and also strengthen the thinking of Primjambono (2017) and Wijayanti and Utomo (2017) which state that GCG cannot be used as an intermediary in the
management system for cooperative performance.
The research implication states that Islamic cooperatives must be able to
implement the role of internal supervisors, SSB and Risk Management, and GCG
properly, so it will have an impact on performance. This research is only limited to
sharia cooperatives in South Tangerang City using cross-section data from 2018 to
2019 from the Annual Cooperative Member Meeting report.

Keywords: Governance, Risk Management, Compliance, Health, Cooperative, Sharia, Supervisor, DPS, SmartPLS, Path, Intervening