Risk Management Strategies at PT X Construction Company during Pandemic COVID-19
- July 15, 2020
- Posted by: RSIS
- Categories: IJRISS, Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186
Risk Management Strategies at PT X Construction Company during Pandemic COVID-19
Arga Santoso1, Setyo Riyanto2
1Master of Management Student, Mercu Buana University, Jakarta, Indonesia
2Associate Professor, Mercu Buana University, Jakarta, Indonesia
Abstract: The rapid spread of the COVID-19 outbreak had an impact on the Indonesian economy. One of them is the construction sector. PT X was affected by COVID-19; several projects had to be stopped temporarily following local government recommendations. Some targets set by the company were not achieved. Therefore, there is a need for good management to prevent the widespread and transmission of COVID-19. PT X developed a strategic plan regarding the potential impact of COVID-19 on the operational processes of its business services. PT X implements several management strategies, one of which uses risk management so that in the future, the company can make the right decisions in business management during this pandemic. It also anticipates the government’s plan to impose New Normal. With risk management, it is expected that uncertainties that cause losses can be reduced or even eliminated for the sustainability of activities in the company. Some concrete steps taken by PT X are monitoring the health of employees daily, making and implementing health protocols, and forming a COVID-19 ranger.
Keywords: COVID-19, Risk Management, New Normal
I. INTRODUCTION
COVID-19 cases first appeared in Wuhan, China, at the end of 2019. The spread of the virus pandemic was so fast from human to human, from one country to another, that it spread throughout the world, including Indonesia. The inclusion of COVID-19 outbreak cases in Indonesia was announced on March 2, 2020 (Nurmasari, 2020).
The rapid spread of the COVID-19 outbreak, of course, had an impact on the Indonesian economy. Indonesia has restrictions on going out so that certain sectors of the economy are negatively affected by the virus. In this situation, it can be understood that the government does not dare to take a lockdown step in this phenomenon, because the risk leads to the occurrence of economic disaster, which automatically has implications for other social impacts (Abodunrin et al., 2020).
The chief risk officer (CRO) and many risk managers who missed this pandemic risk are risks that need to be watched this year. In The Global Risks Report 2020, pandemic risks do not make it into the top 10 risks. It only ranks 10th as a risk that has a large impact on the world. Risks related to environmental factors (such as extreme weather or natural disasters) and geopolitical and technological factors (such as weapons of mass destruction or data theft) dominate risk predictions in 2020.
