FINANCIAL RISK MANAGEMENT IN HIGH-RISK INDUSTRIAL COMPANIES: A QUALITATIVE STUDY ON THE MANUFACTURING AND ENERGY SECTORS

Abstract

The manufacturing and energy industries are major contributors to global economic growth but face complex challenges in managing financial risks due to fluctuations in raw material prices, exchange rate volatility, and regulatory changes. Although awareness of financial risk management is increasing, the implementation of risk mitigation strategies in high-risk industries still faces various obstacles, including a lack of integrated systems and low adoption of technology in risk analysis. Therefore, this study aims to explore financial risk management strategies implemented in the manufacturing and energy industries, highlighting key factors influencing the effectiveness of policy implementation. This study employs a qualitative descriptive approach through in-depth interviews with Chief Financial Officers (CFOs), Risk Management Officers, regulators from OJK/ESDM, financial analysts, and financial managers in high-risk industries. The findings indicate that the implementation of Enterprise Risk Management (ERM), hedging strategies, supplier diversification, and the adoption of technologies such as ERP and artificial intelligence (AI) effectively enhance companies' financial resilience. Furthermore, compliance with ISO 31000 and financial reporting transparency contribute to reducing uncertainty and improving financial stability. The implications of this study emphasize the importance of a technology-driven approach and regulatory compliance in enhancing the effectiveness of financial risk mitigation strategies, enabling companies to adapt to global market dynamics and sustain their operations.