Improving Regional Sulawesi Downstream Oil and Gas Construction Risk Management: A Literature Review

Managing risk effectively is critical for the success of businesses, particularly in high-stakes industries such as downstream oil and gas construction. This sector can be defined by complex initiatives that are highly vulnerable to financial, immediate, and operational hazards. Effective risk management not only reduces possible losses but also improves decision-making and resource allocation, therefore guaranteeing the achievement of project objectives. This study constructs a conceptual framework to establish a Risk Management Process that aligns with organizational needs by integrating elements from two globally recognized frameworks: PMBOK (Project Management Body of Knowledge) and AACE (Association for the Advancement of Cost Engineering). The proposed methodology combines the strengths of both frameworks to address the key project management requirements and resolve cost- and schedule-related challenges, which are critical in downstream oil and gas projects. The framework's development uses Multiple Attribute Decision-Making (MADM) methods to systematically identify and prioritize relevant risk management qualities. The initial screening utilized tools including Likert-scale analysis and Non-Dimensional Scaling, while ordinal ranking and weighting factor methods ensured conformity with organizational priorities and objectives. This systematic approach facilitated the identification of the most relevant risk management techniques from PMBOK and AACE, resulting in a tailored strategy designed to enhance project performance. The study's findings highlight the necessity of integrating strategies to address industry-specific challenges, providing a practical and adaptable framework for risk management in complex projects. This conceptual framework establishes a foundation for future empirical research and can be applied across many sectors and enterprises to enhance risk management effectiveness.