Objective - The aim of this study to investigate the impact of risk assessment using the risk inherent and quality implementation of quality risk management in the operational activities of banking operations to earnings management practices through loss loan provisions and examine whether the mechanism of corporate government bank covering structure of corporate governance and quality of corporate governance can reduce the impact increase in earnings management in Banking sector of Indonesian.

Methodology/Technique - We used data pooled from 2012 through 2014. By exploring the purposive sampling method, the 36 banking listed on the Stock Exchange Indonesian were selected as a sample of this study. A panel data multivariate regression methodology is used.

Findings - The result of this study that (1) risk assessment strengthens the decrease in the earning management implementation after the adoption of IFRS in IAS 39; (2) corporate governance mechanisms can weaken the decrease in the earnings management practices through loan loss provisions. The final conclusions are IFRS in IAS No. 39 and Basel II Accord generally evidence to improve in bank's financial report quality.

Novelty - This study could not find an empirical evidence on the impact of corporate government mechanisms covering structure of corporate governance and quality of corporate governance can reduce the increase in earnings management in banking sector of Indonesian

Type of Paper - Empirical

Keywords: Risk Assessment, Corporate Governance, Earnings Management, Loan Loss Provisions.