ENTERPRISE RISK MANAGEMENT TO MINIMIZING FINANCIAL DISTRESS CONDITION USING ANALYTICAL HIERARCHY PROCESS METHOD IN PT.XYZ

• Main Author: Nur Afifa Mukhlis, Ervie
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52019
• Institution: Institut Teknologi Bandung

PT. XYZ as one of the state-owned telecommunications infrastructure providers that suffered losses gave a strong signal that the company was experiencing financial distress. The Altman Zscore is used to predict financial distress. However, to prevent the company from bankruptcy risk is not only focused on the financial aspects but also from various aspects such as marketing, operations, or human resources aspects. All aspects of management in the company must be good in order to synergize with the company's goals can be realized. In this research, corporate risk management is used to identify what risks that could lead companies to experience financial distress. So that with good risk handling, likelihood and consequences from the risk could be avoided or decreased. Altman z-score used the method of multiple discriminant analysis with five financial ratios. The result of Altman z-score analysis company has to further analyze the causes, how to mitigate and solve the financial problems that are being faced by the company through enterprise risk management. The company needs to conduct risk management process. After conducting risk management process, monitoring and review as the final step and implementation of this study. The result from this study is there are risk that classified into high and medium risk can be mitigate by reduce or transfer the risk depands on the most suitable risk treatment. The risk that mitigate by risk transfer are manufacture process risk, market competition and market research risk, expert team risk, and formulation and design risk. The risk that mitigated by risk reducing are credit risk, account receivables risk, insurance risk, tax risk, exchange rate risk, budgeting risk, recording risk, manufacture process risk, material risk, infrastructure risk, selling price risk, service risk, recruitment risk, development and welfare risk, procedure and regulation risk, work accident risk, ethics risk, licensing risk, lawsuit risk, risk of aberration & diversion, hardware risk, software risk, brain-ware risk, data risk, technology disruption, planning risk, implementation risk, reporting and documentation risk, supervision risk. There are risks that classified as low risk which are environment risk and promotion risk.