Optimizing Risk Mitigation Analysis of Business Development Division (Case Study: Urban Transportation Division at PT Kereta Api Indonesia (Persero)

ABSTRACT: The community can use various alternative modes of transportation, and the train is still the choice for most Indonesian people. PT Kereta Api Indonesia (Persero), the object of this research, has 2 main businesses, namely the railroad and the non-railroad businesses. A company's business processes do not stop until the company benefits from the business it does, but in this highly complex and interconnected world, the risk is everywhere. Risk management is an important discipline for companies, institutions, and society in today's modern business world. Risk management is carried out based on the ISO 31000:2018 framework. This research will discuss optimizing risk mitigation strategies as a tool for the business development division to provide effectiveness and how to implement these solutions in the real world. Sources in this study came from secondary data such as annual reports, audited financial reports, and project studies in the Urban Transportation Business Development Division of PT Kereta Api Indonesia (Persero), discussions, and interviews with related parties. Some of the tools used in this study are PEST to analyze external companies, McKinsey 7S Framework to analyze external companies, and the Enterprises' Risk Management method for the risk management process. Managing risk through optimizing risk mitigation can reduce and minimize loss exposure. Based on the risk matrix score results, the company can take risk treatment, whether the risk must be mitigated or accepted. The risk level score from the risk matrix is used to make underwriter decisions in the risk acceptance process at the Business Development Division of PT Kereta Api Indonesia (Persero).