Proceedings of the 8th International Conference on Advanced Research in Business, Management and Economics
Year: 2024
DOI:
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Mapping The Human Capital Risk And Competency Development In The SOE Organization, Case Study At PT Pupuk Indonesia
Antonius Alijoyo, Dr. Banowati Talim
ABSTRACT:
This study aimed to conduct a mapping of the current practices versus the rising need of human capital that relates to the maturity level of ERM in organizations, and identify the associated human capital risks in such a context. The expected outcome was to have a matrix that can be used by organizations, especially SOEs (State Owned Enterprises) in emerging markets to build their organization resilient and agile and therefore sustained through the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) era. The study used a quantitative method and combination of primary and secondary data that are collected through questionnaires, and document reviews. The field study showed that PT Pupuk Indonesia one of SOEs under this study affirmed concern about human capital risk and its possible impact to the effectiveness of human capital functionality itself, and the success of building the risk culture that fits to a higher risk management maturity context. Based on the field study, the matrix was developed that received positive feedback from respondents at board level and top management. As such, it could help them more effectively addressing their human capital risks whilst navigating their way to increase the effectiveness of human capital functionality and building the expected risk culture.
keywords: Human Capital Risk Management; Leadership; ERM; Risk Culture