The Application of Risk Management Practices at PT XYZ: Case Study at Industrial Estate Company in 2018)

Abstract

The aim of this research is to describe the application of risk management practices within the organization of PT XYZ, the company that runs the business of managing real estate. In this context, this research is to explore qualitatively the implementation of risk management along all organizational units within the company. Furthermore, this research would like to identify the maturity level of such risk management application within PT XYZ.

The method used in this research is mainly referred to the principles of Enterprise Risk Management (ERM) based on the practices introduced by ISO 31000. This is such a qualitative field research utilizing descriptive method and analysis. The process of primary data collection is done through guided interviews where related key informant of every organizational unit is thoroughly interviewed in order to gain detailed information related to the application of risk management at his or her unit. In this context, a list of interview points is designed to function as the interview guideline and applied as the main research instruments herein. The key informants of the research are those who empirically lead or dominantly participate on the process of risk management analysis in their own operational units. In case of unavailability of determined primary informant at any organizational unit, this research also provides secondary informant candidate to guarantee the completion of primary data collection. Hence, all research informants are completely interviewed. Then, the primary data are analyzed using descriptive analysis technique. In doing so, the template of analytical steps provided by Enterprise Risk Management is mostly adopted in order to formulate the results of data analysis.

Conclusively, this research uncovers empirical findings PT XYZ has, to some extent, implemented Risk Management Analysis along the year of 2018, such as: risk identification, risk level identification, risk measurement using the framework introduced by ISO 31000.

Finally, this research recommends the following managerial action plans to take into account by the management of PT XYZ:1. Increase Board of Directors support,2. Broaden Risk Awareness Campaigns and 3. Increase Environmental Analysis Skills for all Risk Owners