Facing the VUCA Era, Brantas Abipraya Strengthens Risk Management

22 September 2022

Jakarta, 22 September 2022 - The emergence of many new competitors with high competitiveness in the construction industry creates a fairly complex challenge. Increasingly sophisticated technology is now part of the basis for strengthening competitiveness in various businesses. It is undeniable that technological developments not only have a positive impact, but there are also potential risks in it. PT Brantas Abipraya (Persero), which is one of the state-owned construction companies, realizes that it is important to strengthen the application of risk management to face the VUCA era which is an acronym for Volatility, Uncertainty, Complexity, Ambiguity. As an effort to strengthen risk management principles in the Company, Brantas Abipraya held an Executive Briefing: Creating a Risk Culture to Support and Achieve Company Goals (21/9). Held by virtual zoom, this event was opened by Herman Dwi Haryanto as Senior Manager of Business Development of Brantas Abipraya; keynote speech by Suradi, Director of Finance, HR and Risk Management of Brantas Abipraya with Khalawi Abdul Hamid as the speaker who is Commissioner of Brantas Abipraya.

“The principle of risk management has been applied by Brantas Abipraya in carrying out business processes. This implementation is carried out based on ISO 31000:2018 which has been pocketed in 2021 and is supported by Governance, Risk and Compliance (GRC) to improve efficiency, effectiveness and behavior based on the Company's ethics, "said Suradi. In line with what Suradi said, Khalawi in his presentation also said that the implementation of good risk management will later ensure that the risks in the Company can be identified and an action plan has been made to minimize the impact and possibility of these risks. In addition, the implementation of risk management can also ensure that if the action plan is implemented effectively and can provide recommendations to Top Management regarding risks that may occur as well as suggestions for handling them. Khalawi said again, the implementation of risk management for the Company has many benefits, including being able to prevent the Company from failure and can support the increase in profits directly or indirectly; able to provide information and perspective to management on all risk profiles, fundamental changes regarding products and markets, business environment and necessary changes; able to create adequate reserves to anticipate risks that have been measured and calculated so as to avoid potential losses that are relatively larger; and able to calculate and measure the amount of risk exposure and be able to determine the allocation of sources of funds as well as a more precise risk limit.

“This process of maturing the risk culture needs to be carried out to increase the competitiveness and sustainability of Brantas Abipraya. Brantas Abipraya will continue to disseminate and internalize risk management to all levels of Abipraya Personnel in order to create an equal understanding of the importance of implementing risk management and considering risk in every decision making, "concluded Khalawi.