Development of a Framework for Determining Business Process Indicators as a Basis for Risk Identification at PT PLN (Persero)
Keywords:
Key performance indicator, Risk Identification, Business Process Management, Process Performance Indicators, Risk ManagementAbstract
PLN has established long-term objectives detailed in the Rencana Usaha Penyediaan Tenaga Listrik (RUPTL), or Electricity Supply Business Plan, for 2021-2030. This plan focuses on providing an adequate, reliable, and efficient electricity supply to ensure national energy security. However, significant uncertainties may present risks that threaten the achievement of PLN's strategic goals and business processes, potentially disrupting the company's business sustainability. To mitigate these risks, PLN has implemented risk management practices and business process standardization, with policies that include mandatory risk identification in business processes. Process Performance Indicators (PPIs) are measurable values used to demonstrate the effectiveness of a process. In practice, the formulation of PPIs at PLN has not been optimally implemented due to the absence of specific steps on how to determine PPIs. Therefore, this study aims to contribute both scientifically and to meet PLN's practical needs. Through a literature review and obvservation, this study will examine the relationship between organizational strategy, Key Performance Indicators (KPIs), business processes, and risk management. This study identifies the relationship between strategic objectives, Key Performance Indicators (KPIs), business processes, Process Performance Indicators (PPIs), and risk identification. The findings emphasize the importance of integrating these elements to ensure that every business process not only aligns with the company's strategic objectives but also effectively identifies, manages, and mitigates risks that could potentially hinder goal achievement. The results of this study are expected to serve as a guideline for PT PLN (Persero) in implementing PPIs as tools that not only monitor operational performance but also strengthen proactive risk management. Through this approach, PPIs can be optimized to support corporate performance
achievement, ensure operational sustainability, and uphold good governance at every level of the business process executed
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