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Risk Management Agreement Template for Indonesia

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Key Requirements PROMPT example:

Risk Management Agreement

"I need a Risk Management Agreement between our Indonesian bank and a third-party risk management consultant, focusing on cybersecurity risk assessment and monitoring, with services to commence from March 2025."

Document background
The Risk Management Agreement serves as a crucial document in the Indonesian business landscape, establishing the formal relationship between parties for the provision and implementation of risk management services. This agreement becomes necessary when organizations seek to formalize their risk management frameworks, either through internal structuring or external service providers, ensuring compliance with Indonesian regulations including OJK Regulation No. 1/POJK.05/2015 and related directives. The document outlines comprehensive risk management approaches, governance structures, reporting requirements, and compliance obligations while addressing specific industry requirements and regulatory frameworks. It is particularly relevant in the context of Indonesia's evolving financial and corporate governance landscape, where formal risk management structures are increasingly mandated by regulators.
Suggested Sections

1. Parties: Identification of the contracting parties, including their legal status and registration details under Indonesian law

2. Background: Context of the agreement, including the purpose of the risk management arrangement and regulatory context

3. Definitions: Detailed definitions of terms used throughout the agreement, including specific risk management terminology

4. Scope of Services: Detailed description of the risk management services to be provided

5. Risk Management Framework: Overview of the risk management approach, methodologies, and frameworks to be implemented

6. Roles and Responsibilities: Detailed breakdown of each party's obligations and responsibilities in the risk management process

7. Governance Structure: Description of the governance framework, including oversight committees and reporting lines

8. Reporting Requirements: Specifications for risk reporting, including frequency, format, and content requirements

9. Compliance Requirements: Obligations to comply with relevant Indonesian regulations and internal policies

10. Confidentiality: Provisions regarding the handling and protection of confidential information

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Fees and Payment: Financial terms including fee structure, payment schedules, and related conditions

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Dispute Resolution: Procedures for resolving disputes under Indonesian law

15. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

1. Business Continuity and Disaster Recovery: Required when the agreement involves critical risk management services that need continuous operation

2. Technology and Systems: Needed when the risk management services involve specific software or technical systems

3. Data Protection and Privacy: Required when personal or sensitive data processing is involved

4. Insurance Requirements: Needed when specific insurance coverage is required for risk management activities

5. Training and Support: Include when the agreement involves provision of training or ongoing support services

6. Performance Metrics: Required when specific KPIs or service levels need to be maintained

7. Regulatory Reporting: Include when there are specific regulatory reporting obligations to OJK or other authorities

8. Subcontracting: Needed when third-party service providers may be involved in delivering services

Suggested Schedules

1. Schedule 1 - Service Level Agreement: Detailed specifications of service levels and performance metrics

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, charges, and payment terms

3. Schedule 3 - Risk Assessment Framework: Detailed methodology and criteria for risk assessment

4. Schedule 4 - Reporting Templates: Standard formats for various required reports

5. Schedule 5 - Governance Structure: Detailed organizational structure and governance framework

6. Schedule 6 - Escalation Matrix: Procedures and contact details for issue escalation

7. Appendix A - Key Personnel: List of key personnel and their roles from both parties

8. Appendix B - Compliance Requirements: Detailed regulatory and compliance requirements

9. Appendix C - Technical Requirements: Technical specifications and requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































Clauses








































Relevant Industries

Financial Services

Banking

Insurance

Asset Management

Technology

Manufacturing

Energy

Mining

Healthcare

Infrastructure

Telecommunications

Real Estate

Transportation

Retail

Professional Services

Relevant Teams

Risk Management

Legal

Compliance

Internal Audit

Finance

Operations

Corporate Governance

Strategic Planning

Business Continuity

Internal Control

Regulatory Affairs

Relevant Roles

Chief Risk Officer

Risk Manager

Compliance Officer

Chief Financial Officer

Legal Counsel

Risk Assessment Specialist

Corporate Governance Officer

Internal Audit Manager

Operations Director

Chief Executive Officer

Risk Control Officer

Regulatory Compliance Manager

Business Continuity Manager

Strategy Director

Head of Operations

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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