Influence of Critical Success Factors of Effective Risk Management Procedures for the Effective Functioning Of The Organization (Case Study: PT Pembangkitan Jawa-bali Pjb)

Abstract

No organization can avoid risk, nor should they insure against every risk. Organizations exist to take on risks in areas where they have developed the capability to cope with risk. PT PLN Nusantara Power, known as PLN NP, is a subholding of PT PLN (Persero) which is engaged in the field of electricity generation and other supporting businesses. Based on data from the company's top level, several problems have been mapped in risk factors which include the strategic, financial, operation, project, and obedience categories. So, it is necessary to identify variables that affect the success of risk management in the project. This study aims to test variables that have a negative influence on project performance. The sample in this study was PJB employees. The structural equation modeling (SEM) approach was adopted to analyze these factors because of the lack of evaluation of the causal relationship between internal and external risk. This study examined the relationship between risk factors causes and project success. Data were analyzed through the Smart PLS software package using SEM. There are 2 variables from the six risk factors that affect project success. Project Management (PM) of PJB companies has a significant effect on project success (EF) which is indicated by a T-Statistical value of 2.306 more than 1.96.