Promoting Sustainable Economy by Integrating Tri Hita Karana Concept in The Bank's Ownership Structure as Inclusive and Sustainable Risk Mitigation

Abstract

Objective: Bank ownership structure can influence corporate governance and risk management. Risk Mitigation as a comprehensive effort to identify, measure, and reduce various types of risk impacts faced by the banking industry.   Theoretical Framework: The concept of tri hita karana rooted in Balinese philosophy offers a holistic framework to achieve balance and harmony in three aspects that emphasise harmony between man and God, man and man, and man and his environment. Studies on the integration of the tri hita karana concept in the context of bank ownership structure and its implications for risk management are limited. This article aims to explore the potential synergies between bank ownership structure, tri hita karana principles, and risk mitigation strategies that can be applied.   Method: This research uses a qualitative approach based on a literature study, by reviewing various sources related to banking ownership structure, tri hita karana concept, and risk management in the banking industry.   Results and Discussion: The results of the analysis show that the integration of the tri hita karana concept in the ownership structure of banks can contribute to more comprehensive risk mitigation. The balance between parhyangan, pawongan, and palemahan can encourage better corporate governance practices that are sustainable, an organisational culture of integrity, and have environmental social responsibility.   Research Implications: This article can provide recommendations that in the preparation of policies and procedures need to integrate the values of Tri Hita Karana, develop a monitoring and evaluation system based on the concept of balance, provide training and socialisation to all employees based on the concept of tri hita karana and conduct regular control and evaluation of the effectiveness of its implementation.   Originality/Value: This article offers a new conceptual framework in understanding the relationship between ownership structure, tri hita karana concept as an effort of risk mitigation strategy in the banking sector.