Abstract:
Pension Fund, as a legal entity that manages the property and run a pension plan that maintains the sustainability
of the pension benefit income for the participants in the after-work period, is particularly vulnerable to risk. In
the context of pension fund management, the risks that are faced are the insufficient funds that may influence the
fulfillment of the obligation of the Pension fund in giving the pension benefits to its clients. Implementing some
of the techniques / management accounting practices in the Pension Fund, Pension Fund Board can assist the risk
management to improve the performance of organizations in Pension Fund. This study aimed to examine the
effect of management accounting on the implementation of risk management and its implications of
organizational performance. This study measures the extent of management accounting practices in risk
management and how big the integration of them in helping to carry out the essential managerial functions to
improve organizational performance. The results showed that: (1) Management accounting significantly affects
the risk management of the employer Pension Fund that hold Defined Benefit Pension Plan (Program Pensiun
Manfaat Pasti (PPMP)) in West Java-Banten, and (2) risk management significantly affects the organization’s
performance in the Employer Pension Fund that hold Defined Benefit Pension Plan in West Java-Banten. This
research was conducted in Pension Fund Defined Benefit Pension Plan in West Java-Banten, so the results
cannot be generalized to the other contexts. The result of this research reinforces the importance of management
accounting and risk management in a complementary relationship to improve organizational performance. This
study contributes to the literature reviews that only few of them testing the significant relationship between
management accounting and risk management.
