OPERATIONAL RISK ANALYSIS OF NETWORK OPERATION CENTER DIVISION PT. IO

Tarigan, Rindu Eka Bakti and Mangani, Ktut Silvanita (2018) OPERATIONAL RISK ANALYSIS OF NETWORK OPERATION CENTER DIVISION PT. IO. Annals of Marketing Management & Economics, 4 (1). pp. 115-129. ISSN 2543 8840 (In Press)

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Abstract

Every company that produces goods and services has a goal to satisfy its customers. Similarly, PT. IO, a company engaged in telecommunications, is always striving to provide the best services to its customers. For that purpose PT. IO try to control the risks that occur in the company. However, by year 2014 PT. IO incurred a loss of more than 10 billion INR (rupiah, ≈715 thousand EUR) caused by for one day error in data routing resulting in increased complaints from customers. In addition, in September 2016 when the sea cable broke for 2 days the company suffered a loss of 5 billion INR (358 thousand EUR). The results of the investigation indicated that there were employees identified as violating the Standard Operating Procedures (SOPS). In the business world, companies anticipate risks that occur through risk management. The company’s management continuously manages risks by conducting risk management activities, such as identifying, performing risk measurement, controlling, communicating, and monitoring the risks from each activity undertaken by the company. Risk management is a system of managing the risk and protection of property and corporate profits against possible loss due to risk. Sunaryo [2007] defines risk as a loss due to unexpected events. While operational risk is defined as failure of internal processes, human resources, and failures in technology systems, as well as losses due to external events, and the consequences of violations of laws and regulations [Muslich 2007, Lam 2007, Hanafi 2009, Gunawan and Waluyo 2015]. Lam [2007] explained that effective operational risk management provide three benefits such as minimizing daily losses while reducing the potential for large events, Improve the company’s ability to achieve its business goals, as well as accounting of operational risks will strengthens the entire corporate risk management system. According to Sunaryo [2007] there are 3 stages in the risk management process: 1) risk identification, 2) risk Measurement, and 3) risk management/evaluation.

Item Type: Article
Subjects: SOCIAL SCIENCES > Commerce > Business > Marketing. Distribution of products
Depositing User: Edi Wibowo
Date Deposited: 15 Aug 2018 09:54
Last Modified: 15 Aug 2018 09:54
URI: http://repository.uki.ac.id/id/eprint/131

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