OPERATIONAL RISK ANALYSIS IN DEPARTMENT OFENTERPRISE RISK MANAGEMENT OF PT. XYZ BASED ON ISO 31000: 2018FRAMEWORK

• Main Author: Dewi, Lucyana
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39711
• Institution: Institut Teknologi Bandung

PT. XYZ is a manufacturing company located in Bandung, West Java, which has established since 1976. The company had ever declared to have stopped operating during the 1998 crisis in Indonesia. Until 2002, in order to face the new global market system, the company experienced a phase of change that focused on implementing new strategies and orienting on business to meet the current situation along with new structures. One of the results of the restructuring was the emergence of the Department of Enterprise Risk Management in 2003 based on meeting international standards for manufacturing companies that produce a specific product. However, even though the department has been formed to overcome the company's business risks, PT. XYZ still faces problems and challenges in its business until this day which have fatal consequences for its companies such as delays in supply chain management, management of human resources that have not been optimal, and losses to financial statements in the last 10 years except in 2014 and 2017. This is proof that operational risk management at PT. XYZ has not been implemented properly. In practice, risk analysis in operational Department of Enterprise Risk Management itself has never been done. To find out the cause of the ineffectiveness of risk management implementation practices, operational risk analysis was carried out in the Department of Enterprise Risk Management at PT. XYZ. This risk analysis is carried out using the ISO 31000: 2018 framework where ISO / TR 31004: 2016 and ISO / IEC 31010: 2016 serve as guidelines in the implementation and techniques of using the framework. In conclusion, according to the analysis that has been carried out, 19 risks have been identified with four different types of operational risks, namely processes, systems, people, and external events. From the assessment of the level of likelihood and consequence for each risk, the results show that 10 risks belong to the category of "high" risk while the other 9 include the risk of "moderate" which means that there is a need for mitigation actions for all operational risks to reduce the level of likelihood and consequence of these risks.