Articles

Proposed Risk Mitigation for PT ABC to Maximize Income (Hospitality Industry Sector)

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The questions on the research are what are the risks that influence business PT ABC, what are the impacts of these risks, what are the mitigation techniques used to reduce the severity of the impacts. This study aims to identify and examine the risks that influence the business continuity and operations of the company PT ABC, aims to examine the impact of these risks and to investigate risk mitigation in reducing risk. Despite the global economic downturn, Indonesia continues to create increasing number of tourists. As tourists and businesspeople come to visit Indonesia, hotel demand is expected to grow in the next years and decades. Cotah (2019) why hotel investment fails because of not aligned with the right people / team, poor service and maintenance, inflexible management, blasted by new competition, cost overrun to starting any construction or renovation project and poor projection and not understanding location that weakening over time. However, without careful risk management the chance of failing is relatively high. The concept used is the risk management guideline by ISO 31000 which contains the scope, definition, principles, framework and process of risk management. The sources for risk identification research come from interviews and brainstorming. The Analytical Hierarchy Process (AHP) is used to make a risk analysis with the help of Expert Choice version 11 software to analyse the weight of the respondent’s perspective, after obtaining the results of the risk evaluation then create a risk mapping to get the level of risk. Next, the final step is to create risk mitigation and implementation plans to reduce risk. Based on this research, 29 risk factors were found from 4 risk categories, which are Operational, People, Construction and Finance. There are 14 risk factors that are categorized at high risk level, then there are 7 risk factors that are categorized at a moderate risk level, and there are 8 risk factors that are categorized at a low risk level.

Risk Identification and Risk Prioritization Using Analytical Hierarchy Process (AHP) (Case Study: Human Capital Management, Procurement, and General Affairs of Holding Company PT. ABC)

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Every company will face the fact that there are events that can be predicted or some that cannot be predicted. Companies to deal with these problems need to manage those risk well. According to ISO 31000, the definition of risk management is part of governance and leadership and is the basis for managing the organization at all levels.

Holding company PT. ABC is a non-manufacturing company that is part of one of the largest telecommunications group companies in Indonesia. This company is engaged in strategic investment and holding where the company’s business activities include network development, multimedia services, and investment in other similar companies. This company only has a special unit to manage risk management, the unit was only formed in 2021. Because the formation of risk management in this company is still new, in its implementation it still has shortcomings, which include that they are still lacking in communication with each unit to identify the risks faced and they do not pay enough attention to details such as seeing the score of each of those risks and determining which ones are the most important need to be prioritized.

This research was conducted using Focus Group Discussion (FGD) as a process of identifying possible risks that may occur and Analytical Hierarchy Process (AHP) to obtain risk priorities from each of the same risks. There are 11 risks that occur with 4 risks that have the same score at the High level, and 3 risks that have the same score at the Medium level. Priority weighting using AHP obtains a priority sequence for each risk that has a score at the same level.