Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management
The development of a water supply system requires a high investment cost, and financial, environmental, and institutional aspects need to be considered. As major projects involving many stakeholders, drinking water supply projects become vulnerable to risks. A risk-based analysis is required to...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2015-12-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | http://ijtech.eng.ui.ac.id/article/view/1426 |
| _version_ | 1797965629813161984 |
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| author | Akhmad Hidayatno Armand Omar Moeis Aziiz Sutrisno Wulan Maulidiah |
| author_facet | Akhmad Hidayatno Armand Omar Moeis Aziiz Sutrisno Wulan Maulidiah |
| author_sort | Akhmad Hidayatno |
| collection | DOAJ |
| description | The development of a water supply system requires a
high investment cost, and financial, environmental, and institutional aspects
need to be considered. As major projects involving many stakeholders, drinking
water supply projects become vulnerable to risks. A risk-based analysis is
required to reduce the likelihood of failure in both the operational and
financial aspects of such projects. This study describes the process of risk
management planning for a drinking water supply system construction project in
South Bali. The case study is based on the project risk management method with
the value at risk to calculate the impact of risks in project investment. The
purpose of this study is to obtain a financial risk model that maps potential
risk factors and calculates the financial impact of risks on the project. This
is used to create alternative strategies to reduce the impact of risks on
investment made during the development of the project. The analysis showed that
of the three priority risk factors, production capacity has the greatest
influence on the net present value of the project. |
| first_indexed | 2024-04-11T02:02:00Z |
| format | Article |
| id | doaj.art-82e502956a2b4bc789456807e6ac1a42 |
| institution | Directory Open Access Journal |
| issn | 2086-9614 2087-2100 |
| language | English |
| last_indexed | 2024-04-11T02:02:00Z |
| publishDate | 2015-12-01 |
| publisher | Universitas Indonesia |
| record_format | Article |
| series | International Journal of Technology |
| spelling | doaj.art-82e502956a2b4bc789456807e6ac1a422023-01-03T03:50:35ZengUniversitas IndonesiaInternational Journal of Technology2086-96142087-21002015-12-016589490410.14716/ijtech.v6i5.14261426Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk ManagementAkhmad Hidayatno0Armand Omar Moeis1Aziiz Sutrisno2Wulan Maulidiah3System Engineering, Modeling, and Simulation Laboratory, Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, Depok 16424, IndonesiaSystem Engineering, Modeling, and Simulation Laboratory, Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, Depok 16424, IndonesiaSystem Engineering, Modeling, and Simulation Laboratory, Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, Depok 16424, IndonesiaSystem Engineering, Modeling, and Simulation Laboratory, Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus Baru UI Depok, Depok 16424, IndonesiaThe development of a water supply system requires a high investment cost, and financial, environmental, and institutional aspects need to be considered. As major projects involving many stakeholders, drinking water supply projects become vulnerable to risks. A risk-based analysis is required to reduce the likelihood of failure in both the operational and financial aspects of such projects. This study describes the process of risk management planning for a drinking water supply system construction project in South Bali. The case study is based on the project risk management method with the value at risk to calculate the impact of risks in project investment. The purpose of this study is to obtain a financial risk model that maps potential risk factors and calculates the financial impact of risks on the project. This is used to create alternative strategies to reduce the impact of risks on investment made during the development of the project. The analysis showed that of the three priority risk factors, production capacity has the greatest influence on the net present value of the project.http://ijtech.eng.ui.ac.id/article/view/1426Drinking water supply system, Financial risk model, Project risk management, Risk, Value-at-risk |
| spellingShingle | Akhmad Hidayatno Armand Omar Moeis Aziiz Sutrisno Wulan Maulidiah Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management International Journal of Technology Drinking water supply system, Financial risk model, Project risk management, Risk, Value-at-risk |
| title | Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management |
| title_full | Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management |
| title_fullStr | Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management |
| title_full_unstemmed | Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management |
| title_short | Risk Impact Analysis on the Investment of Drinking Water Supply System Development using Project Risk Management |
| title_sort | risk impact analysis on the investment of drinking water supply system development using project risk management |
| topic | Drinking water supply system, Financial risk model, Project risk management, Risk, Value-at-risk |
| url | http://ijtech.eng.ui.ac.id/article/view/1426 |
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