LEARN TO COPE WITH BUSINESS RISK MANAGEMENT IN THE NEW CONTEXT OF INDUSTRY 4.0

Abstract

Nowadays, the world is entering the Industrial Revolution 4.0, which is a huge change in the society, economic, business operations, and pattern of work with more technological uses that make the environment we face in the future is changing rapidly. There is a high volatility (Volatile), uncertain (Uncertain), complex (Complex) and it is in a difficult-to-guess direction (Ambiguous) in which this world is called for short "VUCA World" and the risk that occurs in this world is called “VUCA Risk”. The response and risk management of VUCA risk is different from normal risk management because the VUCA risk, is the risk associated with a diverse, complex and dynamic external effects. This article is intended to provide knowledge and understanding about the "Industrial Revolution 4.0", and the transformation of the business in the 4.0 including approaches to risk management guidelines in the VUCA world. The risk management of VUCA risk has a major principle is critical thinking, thinking outside the box and collaboration from many divisions in the organization, as well as executives should study the situations in which they may be at risk to the business and be prepared to deal with such risks by diversification or risk assurance to reduce potential losses that will benefit the organization to get ready to cope with the world's upcoming changes correctly. The one thing that organizations can use to cope with such a change is to have an effective enterprise risk management system in accordance with the changes in the 4.0.