RATING RATE ASSESSMENT ENTERPRISE RISK MANAGEMENT IN CONTRACTOR COMPANIES IN INDONESIA (CASE STUDY: JAKARTA)
The efforts of contractor companies to achieve good performance are always accompanied by risks. To minimize risk or uncertainty, contractor companies apply risk management to their companies. As the development and perspective of managing risk has become increasingly complex, new terms have emerged...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/46762 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The efforts of contractor companies to achieve good performance are always accompanied by risks. To minimize risk or uncertainty, contractor companies apply risk management to their companies. As the development and perspective of managing risk has become increasingly complex, new terms have emerged, namely Integrated Risk Management or Enterprise Risk Management (ERM), which identify the risks the company is experiencing and determine the appropriate response in accordance with risk appetite and company goals.
The research objective is to determine the extent to which the contracting company applies the principles and processes of risk management and to know the factors that influence it by conducting a case study of 23 Large Qualification Contractors and 11 Medium Qualifying Contractors using predetermined indicators.
The results show that ERM has been run optimally, with principles and processes that have been integrated in the business processes of large state-owned contracting companies. For large BUMS contracting companies and mid-sized contractors the principles have been implemented but a supervisory system for the implementation of ERM is still needed, accompanied by periodic training and improvements. The experience factor of implementing Enterprise Risk Management and company qualifications influences the level of ERM maturity. However, there was no significant difference in the maturity value of ERM of contractor companies that adopted ISO 31000 and those who did not adopt ISO 31000. In addition, ERM in medium-sized contractor companies was hampered by the lack of ERM training process and the low quality of data received was an obstacle for large contractors. However, there is the highest benefit felt by the contracting company that is, improving overall financial performance. ERM maturity value affects the financial performance of contractor companies, starting from the ERM maturity value of 0.3.
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