Copyright © 2018 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. International Journal of Engineering & Technology, 7 (3.27) (2018) 376-378 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research paper Earning Management and Risk Profile in the Banking Industry: Case Study from Indonesia Hery Winoto Tj 1* 1 Lecturer, Faculty of Economics and Business Universitas Kristen Krida Wacana, Jakarta. Abstract This study aims to investigate the application of earnings management and risk profile in the banking industry in Indonesia, during the period 2008-2017 data on 41 banks listed on the Stock Exchange. This research use analysis technique of FMOLS regression data by first doing correlation test by using correlogram. From the research that has been conducted in the results that there is a very significant relationship between earnings management and risk profile in 41 banks in Indonesia. Keywords: Earnings management, risk profile, FMOLS regression. 1. Preliminary In a Securities and Exchange Commission (SEC) report a fantastic fine, amounting to US $ 29.2 million to a well-known Halliburton company in violation of corrupt practices or the Foreign Corrupt Practices Act (FCPA). In the lyrical SEC report, explained that the Halliburton company earned only US $ 14 million in profits from a business deal considered to violate FCPA. Thus, this fantastic side is worth the error: Halliburton belongs to a leading multinational company that deserves business ethics and legislation. Especially in the United States apply SOX, FCPA, and other regulations and become a role model of management practices. Halliburton as a large corporation should have and implement anti-fraud governance in which it is fraud risk management and fraud control. The fine for Halliburton is related to Halliburton obtaining business by paying corruptive payments to get oil service contracts to Angola state-owned company named SONANGOL. In addition to a $ 29.2 million fine, the Halliburton Company is also required to obtain an independent consultant who will review and oversee the anti-corruption policies of Halliburton for at least 18 months, then Halliburton Vice president Jeannot Lorenz fined USD75,000 for FCPA violations, internal accounting control and falsify bookkeeping and records. The case of Halliburton's position according to the SEC begins with Halliburton's efforts to maintain a local company in Angola owned by former Halliburton employees who became comrades and neighbors of the SONANGOL official who finally approved the contract. Halliburton made a $ 13 million contract to a local company to comply with local content provisions, not for the scope of work. Lorenz should have left the scope of the contract and searched for the right contractor. In this mismanaged corporate governance practice, Lorenz failed to execute a competitive tender, avoiding the obligation to request a review of a procurement contract to a local company first to a special committee at Halliburton. Halliburton paid US $ 3.705 million to a local Angola company and finally awarded Halliburton the seven contracts. Learning from this case, Halliburton appears to have internal rules and controls to prevent corrupt practices regarding obtaining contracts and subcontracting. However Halliburton failed in its implementation resulting in reputational risk and compliance risk. The profit earned is eroded by a fine. Internal auditors in assurance of the earnings (sales) or business acquisition cycle must be aware of fraud risks. Similarly, in conducting assurance on the procurement cycle (purchase) internal auditors should be wary of fraud risks. This obligation has been determined by the internal audit standards issued by the Insititute of Internal Auditors (IIA). Is there a link between earnings management and risk management in corporate management. Therefore, the authors are interested to do this research, with the theme of earnings management and risk profile of the company, in view of the banking industry. The authors highlight this theme, as it sees the banking industry in Indonesia as being vulnerable to earnings management and risk profile. 2. Literature Review In this study the theme of profit management and risk profile in banking companies in Indonesia. The research done by this writer is almost the same as the study done by [1] in banking companies in Brazil. However, research conducted by [1] uses data on financial statements that range between 2001 and 2012 in Brazil. Seeing the importance of banking in the economy in a country, it is necessary to do similar research in Indonesia country. In a study conducted by [1] looking at how discretionary accrual factors are found in financial funds, they are used as analytical tools developed by using profitability ratios from banking in doing research. In earnings management, the role of a manager in the banking industry uses a model discretionary accrual accounting, which can directly create legal and illegal practices, when viewed from the accounting side. But this practice of earnings management, making the role of agents can influence the perception of risk and business analysts of the company as a whole. As described in paragraph 1, a study conducted by [1] in Brazil, gives results that banks in Brazilian countries practice earnings management. What is the hypothesis that has been built in the research, do the test using 2SLS method and give significant results, for the hypothesis that is made. The first conclusion