The Directorate General of Railways' primary responsibility is to carry out some of the responsibilities and functions of the Ministry of Transportation, which is subordinate to and answerable to the Minister of Transportation, in accordance with Decree of the Minister of Transportation Number PM 67 of 2021 concerning the Organization and Work Procedure of the Ministry of Transportation.  The Directorate General of Railways is responsible for developing and carrying out technical standardization in the railways industry.

The Directorate General of Railways constantly deals with environmental dynamics that lead to numerous uncertainties while performing its duties. The achievement of organizational goals is impacted by the dangers that are brought about by this uncertainty. The impact can be positive or negative, which means it can bring opportunities or threats. 

Each organization, including work units in the public sector, faces risks in each decision and course of action, from long-term planning to day-to-day operations. Particularly in the middle of a complicated and uncertain world where all enterprises must be more change-adaptive. 

increased levels of complexity and uncertainty must be managed by organizational leaders strategically since they inevitably result in increased levels of organizational risk.  To avoid impeding or preventing the accomplishment of organizational objectives, all risks that the organization faces must be managed in an organized, systematic manner. 

For this reason, risk management is needed as a systematic and structured approach in managing uncertainties and risks that can hinder the achievement of organizational goals. Good risk management will help the leadership and management of the organization to consider risks in every strategic decision making and organizational performance management.

Referring to Government Regulation Number 60 of 2008 concerning the Government Internal Control System, every head of government agency is mandated to carry out internal control in their work environment. One of the elements of government internal control is a risk assessment carried out using a risk management approach, which aims to manage risks so that an organization, program, or activity can achieve its stated objectives. Thus, risk management is part of the implementation of the government's internal control system and must be carried out by every government organization both at the central and regional levels.

Regulation of the Minister of Transportation Number PM 25/2018 concerning Procedures for Implementing the Government Internal Control System within the Ministry of Transportation explains that risk assessments are carried out at the level of government agencies, work units, and independent work units. Risk assessment at the level of work units and independent work units is carried out on activities or activities carried out by the unit concerned with the intention of recognizing, analyzing, validating, and deciding how to respond to risks.

 For this reason, in order to accelerate the implementation of risk management within the Directorate General of Railways, Risk Management Technical Guidelines are prepared by referring to the provisions, laws, and regulations regarding internal control and risk management that apply within the government and based on SNI ISO 31000:2018 concerning Risk Management Guidelines, including the application of risk management principles, frameworks, and processes in a systematic, structured, and synergistic manner.

Risk Management Technical Guidelines within the Directorate General of Railways shall come into force upon their establishment based on the Decree of the Director General of Railways. With the enactment of these risk management technical guidelines, each work unit and activity within the Directorate General of Railways must follow the applicable provisions in the implementation of risk management in accordance with the provisions contained in these technical guidelines.

The applicability of these risk management technical guidelines is comprehensive and integrated within the Directorate General of Railways, meaning that risk management is not applied separately but, for its effectiveness, must be integrated into the business processes carried out. As a guide, these technical guidelines apply to all risk owner units and risk management units, including the implementation of programs and activities in each work unit.

The implementation of guidelines for risk management implementation must be carried out consistently and continuously and in two directions: starting from the strategic formulation set by the leadership (top down) and carrying out operational activities in all work units as risk owners and managers to become risk profiles and risk treatment and control plans. In conducting risk management, work units must also optimize the use of technology and management information systems to improve the quality of risk management.

In order to maintain the relevance of technical guidelines for the implementation of risk management within the Directorate General of Railways with its objectives and functions, as well as compliance with applicable regulations and best practices, it is important to ensure that these technical guidelines are still in accordance with the needs, relevant to changes in conditions and related legislation, and still able to provide meaningful benefits as a guide to the implementation of integrated and effective risk management within the Directorate General of Railways.

The Directorate General of Railways must be able to always be adaptive in every activity. This is based on rapid environmental changes and has the potential to cause future risks that may arise. The risks faced are certainly very influential in every decision and action, both strategic and operational.

To realize a railway that is reliable, competitive, integrated, technological, synergized with industry, affordable, and provides added value on an ongoing basis for national resilience, the technical guidelines for implementing risk management must always be evaluated, reviewed, and updated both periodically and continuously. Updating the Technical Guidelines for Risk Management is carried out at least once every two years.

Download Here