Open Journal Systems

Managing Operational Risks in Water Supply Sector

Kandiana Wati, Mukhamad Najib, Setiadi Djohar


Abstract. Water and sanitation sector is characterized with having many risks. The ability to manage risks is one of the success factors in providing clean water services to the community. The objective of this paper is to identify the operational risks in the water supply provision, to analyze the significant risks, and to formulate actions to manage the significant risks.  The operational risks are analyzed using probability impact matrix. The research shows that the significant operational risks mostly occur during raw water extraction process, which are risks related to the quality and quantity of raw water, as well as reliability of the supporting facilities (intake and transmission pipe). Other significant risks are production failure, intermittent supply, low water pressure, and contractor availability for meter installation. Because significant operational risks are caused by process and external factor, the proposed risk management includes the development of procedures and guidelines, as well as the implementation of effective contractor management. Risk management also includes the establishment of effective communication and coordination with relevant stakeholders. 

Keywords: Operational risk, probability impact matrix, risk management, water company, water supply provision

Abstrak. Sektor air dan sanitasi memiliki banyak risiko. Kemampuan untuk mengelola risiko yang muncul menjadi salah satu faktor keberhasilan penyediaan air bersih bagi masyarakat. Penelitian ini bertujuan untuk mengidentifikasi risiko operasional dalam penyediaan air bersih, menganalisa risiko yang signifikan, serta memformulasikan langkah-langkah penanganan risiko yang signifikan. Analisa risiko operasional dilakukan menggunakan matriks probability impact. Hasil penelitian menunjukkan bahwa risiko operasional signifikan paling banyak terjadi pada proses pengambilan air baku, yaitu risiko yang terkait kualitas dan kuantitas air baku, serta kehandalan fasilitas pendukung (bangunan sadap dan pipa transmisi). Risiko signifikan lainnya yaitu kegagalan produksi, gangguan suplai, tekanan air kecil, dan ketersediaan kontraktor pemasangan meter. Karena risiko operasional yang signifikan disebabkan oleh faktor proses dan eksternal, pengelolaan risiko yang diusulkan meliputi penyusunan prosedur dan pedoman kerja, serta penerapan pengelolaan kontraktor yang efektif. Pengelolaan risiko juga meliputi pengembangan komunikasi dan koordinasi yang efektif dengan pemangku kepentingan yang terkait.

Katakunci: Matriks probability impact, pengelolaan risiko, penyediaan air bersih, perusahaan air bersih, risiko operasional.


operational risk; probability impact matrix; risk management; water company; water supply provisionMu

Full Text:



ADB] Asian Development Bank. (2010). Guidance note: Urban water supply sector risk assessment. ISBN 978-92-9092-167-7.

Boulos, P. F., & Aboujaoude, A. S. (2011). Managing leaks using flow step-testing, network modeling, and field measurement. American Water Works Association Journal, 103(2), 90-97,14.

Chang, C. L., & Liao, C. S. (2012). Assessing the risk posed by high-turbidity water to water supplies. Environmental monitoring and assessment, 184(5), 3127-3132.

Cooper, D., Grey, S., Raymond, G., & Walker, P. (2005). Project risk management guidelines: Managing risk in large projects and complex procurements. John Wiley & Sons Ltd

Cox LA. 2008. What's wrong with risk matrices? Risk Analysis: An International Journal. 28: 497-512.

Crouhy, M., Galai, D., & Mark, R. (2001). Risk management. McGraw-Hill.

Drew, S. A., & Kendrick, T. (2005). Risk management: The five pillars of corporate governance. Journal of general management, 31(2), 19-36.

Fahrudin, A. Z., Vanany, I. (2015). Analisa risiko rantai pasok dan mitigasinya dengan metode FMEA dan QFD di Perusahaan Daerah Air Bersih (PDAB). Prosiding Seminar Nasional Manajemen Teknologi XXII.

Franzetti, C. (2011). Operational risk modelling and management. Francis and Taylor Group.

Haarmeyer, D., & Mody, A. (1998). Tapping the private sector: Approaches to managing risk in water and sanitation. Journal of Project Finance, 4, 7-23.

Hemrit, W., & Arab, M. B. (2012). The major sources of operational risk and the potential benefits of its management. The Journal of Operational Risk, 7(3), 71-92.

Hillson, D. (2002). Extending the risk process to manage opportunities. International Journal of project management. 20(3): 235-240.

Hou, D., Song, X., Zhang, G., Zhang, H., & Loaiciga, H. (2013). An early warning and control system for urban, drinking water quality protection: China's experience. Environmental Science and Pollution Research International, 20(7), 4496-508

Hrudey, S. E., Hrudey, E. J., & Pollard, S. J. (2006). Risk management for assuring safe drinking water. Environment International, 32(8), 948-957.

Jung, Y. J. (2012). Evaluation of subsurface utility engineering for highway projects: Benefit–cost analysis. Tunneling and underground space technology, 27(1), 111-122.

Kunkel, G., Laven, K., & Mergelas, B. (2008). Does Your City Have High?risk Pipes? Journal?American Water Works Association, 100(4), 70-7.

Malhotra, S. (2019). Understanding the contractor management paradox. Professional Safety, 64(5), 27-30

Malm, A., Moberg, F., Rosén, L., & Pettersson, T. J.R. (2015). Cost-benefit analysis and uncertainty analysis of water loss reduction measures: Case study of the Gothenburg drinking water distribution system. Water Resources Management, 29(15), 5451-5468.

Maniar, H. (2010). Risk analysis of infrastructure projects: A case study on build-operate-transfer projects in india. IUP Journal of Financial Risk Management, 7(4), 34-54

McNeil A.J., Frey R., Embrechts P. (2005). Quantitative risk management: Concepts, techniques and tools. Princeton University Press.

Merna, T., Al-Thani, F. F. 2005. Corporate Risk Management: An Organisational Perspective. John Wiley and Sons Ltd. ISBN 0-470-01472-5.

Mohapatra, S., Sargaonkar, A., & Labhasetwar, P. K. (2014). Distribution network assessment using EPANET for intermittent and continuous water supply. Water Resources Management, 28(11), 3745-3759.

Pangeran, M. H. (2012). Praktek Manajemen Risiko Pada Penyedia Layanan Air Minum: Survey di Beberapa Tempat di Indonesia. Prosiding Seminar Nasional Aplikasi Teknologi Prasarana Wilayah. ISSN 2301-6752.

Pastrana, J., Marin, M., Rabelo, L., & Lee, G. (2014). HSI Risk Mitigation Approach to Water Utilities Asset Management Strategies. In IIE Annual Conference. Proceedings (p. 3813). Institute of Industrial and Systems Engineers (IISE).

Purdy G. 2010. ISO 31000: 2009 - setting a new standard for risk management. Risk Analysis: An International Journal. 30(6): 881-886.

Raftery J. (2003). Risk analysis in project management. E&FN Spon

Refsdal, A., Solhaug, B., & StØlen, K. 2015. Cyber-Risk Management. Springer. ISBN 978-3-319-23570-7.

Rossi, G., & Cancelliere, A. (2013). Managing drought risk in water supply systems in Europe: a review. International Journal of Water Resources Development, 29(2), 272-289.

Tabesh, M., Roozbahani, A., Roghani, B., Faghihi, N. R., & Heydarzadeh, R. (2018). Risk Assessment of Factors Influencing Non-Revenue Water Using Bayesian Networks and Fuzzy Logic. Water resources management, 32(11), 3647-3670.

Wibowo, A., & Mohamed, S. (2010). Risk criticality and allocation in privatised water supply projects in Indonesia. International Journal of Project Management, 28(5), 5



  • There are currently no refbacks.