Research Publisher: Manuscript central Available Online at www.ijcrr.info International Journal of Contemporary Research and Review ISSN 0976 – 4852 https://doi.org/10.15520/ijcrr.v9i12.625 December, 2018|Volume 09|Issue 12| International Journal of Contemporary Research and Review, Vol. 9, Issue. 12, Page no: ME 21148-21154 DOI: https://doi.org/10.15520/ijcrr.v9i12.625 Page | 21148 Section: Management and Economics The Effect of Organizational Culture on Bank Risk and Profitability of the Rural Bank (BPR) In Bali Dominicus Djoko B.S. 1 , Ni Luh Putu Wiagustini 2 , Luh Gede Artini 3 , Ida Bagus Panji Sedana 4 1 Management Doctoral Study Program, Faculty of Economics and Business, University of Udayana, Denpasar 2, 3, 4 Faculty of Economics and Business, University of Udayana, Denpasar Corresponding Author: Dominicus Djoko B.S. Received: 2018-10-26; Accepted 2018-11-29, Abstract: This research examines the profitability associated with organizational culture and operational, credit and liquidity risk. This research can be used as a guide in determining policies in the banking world. This research was conducted on The Rural Banks (BPR) in Bali for the period 2013 to 2017, using primary and secondary data sources. The analytical method used is structural equation modeling minor least square (SEM- PLS). The results obtained in this study are organizational culture has no significant effect on profitability and has a significant negative effect on bank risk. While bank risk has a significant negative effect on profitability. Keywords: Organizational culture, bank risk, BPR 1. Introduction: Studies on organizational culture are mostly carried out in developed countries compared to developing countries. Research on 95% organizational culture is carried out in developed countries and 5% in developing countries (Farashahi et al., 2005). Organizational culture is a new understanding of the formation of behavior of members within the company. Until the mid-1980s the organization was understood solely as a rational tool for controlling and coordinating a group of people. Strong culture is one of the company's irreplaceable resources, rare and cannot be replicated (Barney, 1991). A strong culture exudes transformative values, norms, beliefs. Using the concept of organizational culture, this study will explore the influence of Organizational Culture on BPR profitability in Bali as an intangible asset that can increase the profitability of BPR Bali. Research related to organizational culture states that organizational culture can increase profitability through cultural elements such as values, norms, rules and work ethic. Organizational culture is a cognitive framework consisting of: beliefs, norms,