ERM-Based Risk Mitigation in an Aviation Training Center Under Indonesian State-Owned Enterprise (SOE) Governance

Abstract

Background: The aviation industry operates in a dynamic, highly regulated environment where human resource competence serves as a fundamental pillar for safety, security, and service quality. The global pandemic significantly impacted national aviation performance, leading to structural shifts such as early retirement programs that drastically reduced employee numbers across key professions. Managing risks within an aviation training center is critical because unmanaged operational challenges directly threaten training quality, regulatory compliance, and corporate sustainability. Despite these critical vulnerabilities, systematic studies focusing on enterprise risk management (ERM) inside specialized aviation training centers remain limited.  
Purpose: This study aims to evaluate and formulate operational and strategic risk mitigation strategies for the internal training center of an aviation company in Jakarta. Specifically, it analyzes the business processes, assesses the risks of not achieving training objectives, evaluates risk priority levels, and maps structured monitoring mechanisms based on Indonesian state-owned enterprise (SOE) risk governance frameworks.
Design/methodology/approach: This qualitative case study involved six purposively selected informants: two informants representing the risk-management and training-management function and four informants representing flight instructors or training participants. Informants were selected because they had direct experience with training operations, risk governance, instructional delivery, facility or training-media management, or participation in training programs. Semi-structured interviews were conducted in December 2025, while direct observation at the West Jakarta training facility was undertaken during the third quarter of 2025. Corporate reports and internal documents supported source, technique, and time triangulation. The qualitative data were analyzed through reflective thematic analysis involving data compilation, reduction, categorization, theme identification, and interpretive synthesis. The resulting themes informed the risk-event and root-cause register. Likelihood and impact were assessed on five-point scales under PER-2/MBU/03/2023 and SK-6/DKU.MBU/10/2023.
Findings/Results: The study identifies nine primary risks across operational, strategic, compliance, and safety dimensions. Operational risks account for 56% of the identified risk events. The risk with the highest exposure is the suboptimal utilization of training facilities (R01), which falls into the High-risk category. Furthermore, training media downtime (R02), instructor shortages following early retirement (R03), and external customer retention (R06) present Moderate-to-High risk levels that may constrain training execution and unit performance.
Conclusion: The core training process is the phase most exposed to the risk of unachieved objectives. The proposed treatments are expected to reduce the modeled residual-risk positions from High to Moderate or Low-to-Moderate levels. These values are projections and require post-implementation validation. Current monitoring still relies heavily on periodic manual documentation rather than real-time data integration. A more integrated monitoring system could help preserve training production hours, regulatory certification, and the training center's contribution to corporate EBITDA.
Originality/value (State of the art): This study bridges theoretical ERM frameworks and practical risk management in a highly regulated aviation learning environment during post-crisis recovery. It maps operational vulnerabilities to structured Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs), while integrating ISO 31000 principles with mandatory Indonesian SOE risk taxonomy and risk-aggregation requirements.

Keywords: enterprise risk management, risk mitigation, aviation training center, operational risk, SOE regulation