RISK MANAGEMENT AWARENESS AND IMPLEMENTATION IN DIGITAL START-UP

• Main Author: Samsinar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71874
• Institution: Institut Teknologi Bandung

Digital start-ups have become popular in recent years. It is shown by the rapid growth of start-ups in Indonesia which reached 1.190 total start-ups according to the MIKTI start-up mapping in 2021. However, this growth aligns differently with the success rate since 95% of the start-ups fail. The high failure rate of start-ups indicates that the risk faced by a start-up is high. To deal with risk, a company usually implements risk management because it can help maintain its risk and protect its value. Concerning that issue, the researcher wants to know the level of risk management awareness and implementation and how the implication is to start-up performance. To answer that question, the researchers conducted quantitative research and collected the data using non-probability and purposive sampling techniques. The number of respondents is 51, which are CEO/Founder of Digital Start-up in Indonesia. The data collection used an online questionnaire with a close-ended question with four parts: respondent demographic, risk management awareness variable, risk management implementation variable, and company performance. The method analysis used is a descriptive statistic and multiple linear regression, including the T and F tests. This research shows that the risk management awareness level of digital start-up CEO/Founders is high, but the risk implementation still needs to be fully implemented. Furthermore, risk management awareness and risk management implementation have significant effects on start-up performance, while partially, only risk implementation has a significant effect on start-up performance. The result of the study gives a big picture about how is the awareness and the implementation of risk management in startup company, so that the related parties such as start-up, start-up incubator and government could take an action to improve the start-up performance and minimize the failure by fully implementing risk management.