Risk project alignment to strategic objective business at contractor industry in Indonesia

Putu Artama Wiguna, Anik Ratnaningsih*, Nadjadji Anwar, Patdono Suwignjo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Contractors' industrial project risk management competencies in Indonesia are still classified in lower levels. It is proven from many projects' failure due to some causal factors, such as among other the inappropriate project risk management. The consequence of this failure influences the aim intended to be achieved by the company. To reduce such risk, it is required the alignment of project risk management with business objective strategy. This research is aiming to determine the influencing indicators towards project risks, business objective strategies, and alignment. The business entity analysis approach applies the statistical description method, while alignment applies the scoring method. Project risks identification is conducted through questionnaire of contractor industrial stakeholders of 200 respondents. From the survey results there are 13 variables influencing project management risks. The said variables are applied as the risk matrix to be aligned with business objective strategies. Alignment method is conducted by scoring of each variable reviewed from the influencing score of each variable towards the objective strategy. Scoring is provided by 1 (one) for the non-influencing variable, by 3 (three) for fairly influencing variable, and by 9 (nine) for significantly influencing variable. Alignment results tested to several companies at some projects represent that the highest risk factors according to their rank are the risks on procurement control, financial and inflation risks. The applicable strategies are to perform joint operation, joint venture, and governmental inflation policy.

Original languageEnglish
Pages (from-to)1677-1682
Number of pages6
JournalJournal of Applied Sciences Research
Issue number11
Publication statusPublished - Nov 2011


  • Alignment
  • Objective strategies
  • Project management
  • Project risks


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