In this comprehensive presentation, we explored the dynamic world of Entrepreneurial Risk Management through the lens of Pancasila principles, the philosophical foundation of the Indonesian state. The journey began with understanding the essence of Entrepreneurial Risk Management, emphasizing its vital role in the success of businesses. We discussed the various types of risks entrepreneurs face, ranging from market and financial risks to ethics and compliance risks. Throughout the presentation, the significance of Pancasila principles in entrepreneurship was highlighted. We delved into how each principle - Belief in One God, Just and Civilized Humanity, Unity in Diversity, Democracy Guided by the Inner Wisdom of Deliberations/Consensus, and Social Justice for All of the People of Indonesia - shapes ethical decision-making, fosters resilience, and contributes to a proactive mindset towards risks. Real-world case studies were examined, showcasing ethical entrepreneurs who managed risks effectively while upholding Pancasila values. These case studies served as tangible examples of how ethical entrepreneurship, when combined with a proactive mindset, can lead to sustainable success. The presentation also emphasized the role of education in shaping the entrepreneurs of the future. By empowering students with Pancasila values and encouraging a proactive approach towards risk, we aim to nurture a new generation of entrepreneurs who are not only successful but also socially responsible. In conclusion, the integration of Entrepreneurial Risk Management and Pancasila principles forms a powerful framework for ethical and sustainable entrepreneurship. By embracing these principles and applying proactive strategies, entrepreneurs can navigate the complexities of the business world, contributing positively to society while ensuring their own success and the well-being of their communities.

1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Entrepreneurial Risk Management
Strengthening Student Mindset with PANCASILA
Dr. Hendry Hartono SE., MM., CIRR., CLMA., CSCMP
Associate Professor - Senior Faculty Member
5 September 2023

2. Learning Outcome
After studying this chapter, students will be able to:
• LO1: apply the concept of entrepreneurial risk
management principles to real-world business scenarios
effectively.
• LO2: appreciate the role of Pancasila values such as
social justice, unity in diversity, and ethical conduct in
guiding ethical decision-making in entrepreneurship.
• LO3: understand the importance of contributing
positively to their communities and society, aligning
their entrepreneurial efforts with Pancasila principles
and ethical values

3. Agenda
• Introduction
• Entrepreneurship & Pancasila
• Understanding Risk
• Types of Entrepreneurial Risks
• Risk Assessment
• Risk Mitigation Strategies
• Case Studies
• Values in Risk Management
• Pancasila and Ethics
• Building Resilience
• Q&A

4. Introduction
• Definition: Risk management is the process of identifying,
evaluating, and prioritizing risks followed by integrated and
economical application of resources to reduce, observe, and
control the probability or impact of unfortunate events or to
maximize the realization of opportunities.
• Importance in Student Development
– equipping you with the skills to manage risks effectively is
a cornerstone of their education.
– It's not just about preparing you for the business world;
– it's about fostering critical thinking, problem-solving, and
resilience.

5. Entrepreneurship & Pancasila
1. Belief in One God (Ketuhanan Yang Maha Esa): Emphasizing
religious freedom and the belief in a higher power.
2. Just and Civilized Humanity (Kemanusiaan yang Adil dan
Beradab): Promoting social justice, human rights, and the dignity of
all individuals.
3. Unity in Diversity (Persatuan Indonesia): Celebrating the country's
diverse cultures, religions, and ethnicities.
4. Democracy Guided by the Inner Wisdom of
Deliberations/Consensus (Kerakyatan yang Dipimpin oleh
Hikmat Kebijaksanaan dalam Permusyawaratan/Perwakilan):
Advocating participatory democracy and decision-making.
5. Social Justice for All of the People of Indonesia (Keadilan Sosial
bagi seluruh Rakyat Indonesia): Ensuring equitable distribution of
resources and opportunities.
Introduction to Pancasila

6. Entrepreneurship & Pancasila
Entrepreneurship, at its core,
embodies many of these values.
• It champions diversity, as
entrepreneurs often come from
various backgrounds.
• It upholds democratic ideals, as
business decisions are often made
collaboratively.
• It also promotes social justice, as
successful entrepreneurs can create
economic opportunities for their
communities.
Linking Pancasila to Entrepreneurship

7. Entrepreneurship & Pancasila
1. Belief in One God: In entrepreneurship, this principle is reflected in the
ethical conduct of business, emphasizing honesty and integrity in all
dealings.
2. Just and Civilized Humanity: Entrepreneurs should strive to create
businesses that prioritize fairness, respect, and dignity for all employees,
customers, and stakeholders.
3. Unity in Diversity: Successful entrepreneurs often build teams and
networks that are diverse in terms of skills, backgrounds, and perspectives,
which can lead to innovative solutions and inclusivity.
4. Democracy Guided by the Inner Wisdom of Deliberations/Consensus:
Entrepreneurship encourages participatory decision-making, where input
from all team members is valued, fostering creativity and adaptability.
5. Social Justice for All of the People of Indonesia: Entrepreneurs can
contribute to social justice by creating job opportunities, supporting local
communities, and ensuring their business practices are environmentally
responsible.
Values of Pancasila in Business

8. Understanding Risk
Risk, in the context of entrepreneurship,
refers to the probability of an
unfavourable event occurring and its
potential impact on your business.
It's about acknowledging the
uncertainties that surround any venture.
Picture it like a game of chess.
Every move you make is a calculated
risk. When you decide to start a business,
invest in a new product, or enter a new
market, you're making strategic moves
that carry both opportunities and
uncertainties.
Definition of Risk

9. Understanding Risk
Understanding risk also involves understanding how we perceive it.
• Risk perception varies from person to person.
• Some may embrace risks as opportunities for growth, while
others may see them as threats to be avoided.
However, it's crucial to recognize that risk perception can be
influenced by
1. cognitive biases,
2. emotions, and even
3. societal factors.
Being aware of these biases and emotions is essential for making
objective and rational decisions in entrepreneurship.
Risk Perception

10. Understanding Risk
Entrepreneurial Risk Management isn't just about assessing financial or operational
risks; it's also about assessing the ethical implications of your decisions.
When assessing risks, it's not enough to consider only the potential financial gains
or losses. You must also consider the ethical consequences. Ask yourself questions
like:
1. How does this decision impact my employees, customers, or the environment?
2. Does this decision align with my values and the values of my community?
3. Am I treating all stakeholders fairly and with respect?
Ethical considerations are fundamental because they not only protect your
reputation but also ensure the sustainability of your venture. They align with the
Pancasila values of justice and ethical conduct.
Role of Ethics in Risk Assessment

11. Types of Entrepreneurial Risks
Market Risk Financial Risk Operational Risk Strategic Risk Ethics and
Compliance Risk.

12. The Risk Assessment Process
Identifying risks:
Recognizing potential risks that your business might face.
Analyzing risks:
Assessing the likelihood of these risks occurring and their potential
impact.
Evaluating risks:
Determining the significance of each risk and prioritizing them for
mitigation.

13. Risk Mitigation Strategies
Avoidance
Reduction
Transfer
Acceptance
Ethical Considerations

14. Risk Mitigation Framework
SWOT Analysis
PESTEL Analysis
Risk Matrix
Ethical Decision-Making Framework

15. Risk Mitigation Framework

16. Case Studies

17. Case Studies

18. Values in Risk Management
1. Values serve as the compass that directs our decision-making in both personal
and professional contexts.
2. When we face complex and uncertain situations, our values become the
foundation upon which we build our decisions.
They help us prioritize actions that not only mitigate risks but also uphold
principles like fairness, justice, and ethical conduct.
the Importance of Values in Decision-Making

19. Values in Risk Management
• Belief in One God (Ketuhanan Yang Maha Esa): This value emphasizes the
importance of ethical and moral conduct. When facing risks, entrepreneurs
guided by this principle prioritize honesty, integrity, and fairness in their actions.
• Just and Civilized Humanity (Kemanusiaan yang Adil dan Beradab): This value
calls for the fair treatment of all individuals. Entrepreneurs practicing it ensure
that their risk management decisions consider the well-being of employees,
customers, and communities.
• Unity in Diversity (Persatuan Indonesia): This value celebrates diversity,
encouraging entrepreneurs to build inclusive teams and consider diverse
perspectives when assessing risks and making decisions.
• Democracy Guided by the Inner Wisdom of Deliberations/Consensus
(Kerakyatan yang Dipimpin oleh Hikmat Kebijaksanaan dalam
Permusyawaratan/Perwakilan): Entrepreneurs guided by this value involve
stakeholders in the decision-making process, promoting transparency and
collective wisdom in risk assessment and management.
• Social Justice for All of the People of Indonesia (Keadilan Sosial bagi seluruh
Rakyat Indonesia): This value emphasizes equitable distribution of resources
and opportunities. Entrepreneurs aligned with it consider the social impact of their
Integrating Pancasila Values into Risk
Management

20. Pancasila and Ethics
• Belief in One God (Ketuhanan Yang Maha Esa): encourages us to uphold integrity,
honesty, and fairness in all our dealings, respecting the trust placed in us by
stakeholders.
• Just and Civilized Humanity (Kemanusiaan yang Adil dan Beradab):
Entrepreneurs guided by this principle prioritize the fair treatment of all individuals,
whether they are employees, customers, or partners. It emphasizes empathy and
compassion in our interactions, ensuring that our decisions consider the well-being
of humanity at large.
• Unity in Diversity (Persatuan Indonesia): inclusive teams and considering diverse
perspectives when assessing risks and making decisions. By embracing diversity,
we foster innovation and creativity.
• Democracy Guided by the Inner Wisdom of Deliberations/Consensus (Kerakyatan
yang Dipimpin oleh Hikmat Kebijaksanaan dalam Permusyawaratan/Perwakilan):
Entrepreneurs practicing this principle involve stakeholders in the decision-making
process, promoting transparency and collective wisdom in risk assessment and
management. It aligns with democratic values and ensures that decisions are not
made in isolation.
• Social Justice for All of the People of Indonesia (Keadilan Sosial bagi seluruh
Explore How Pancasila Relates to Ethics in
Entrepreneurship

21. Pancasila and Ethics
• Dilemma: A business faces a choice between maximizing profits by cutting corners
on product safety or investing in rigorous safety testing, which will reduce profit
margins.
Solution: Upholding the principle of "Belief in One God," the business prioritizes
product safety and ethical conduct over short-term profits. This not only aligns
with moral values but also ensures long-term trust and sustainability.
• Dilemma: A company has an opportunity to expand into a new market by
partnering with a local supplier known for exploitative labor practices.
Solution: Guided by "Just and Civilized Humanity" and "Social Justice for All," the
company chooses to partner with suppliers committed to fair labor practices,
promoting human rights and social justice.
• Dilemma: An entrepreneur must decide on a major strategic shift that could impact
employees' job security.
Solution: By embracing "Democracy Guided by the Inner Wisdom of
Deliberations/Consensus," the entrepreneur engages employees in the decision-
making process, fostering a sense of ownership and ensuring that the best
interests of all stakeholders are considered.
Ethical Dilemmas and Solutions

22. Building Resilience
• Resilience is not just a buzzword; it's the foundation upon which
successful entrepreneurship is built. Picture resilience as the firm
foundation of a chessboard - it's what keeps the game going, even
in the face of adversity.
• In the entrepreneurial journey, you will undoubtedly encounter
challenges, setbacks, and unexpected hurdles. Resilience is your
shield, your ability to withstand these blows and come out
stronger. It's not merely bouncing back; it's bouncing forward with
newfound wisdom and strength.
• Resilient entrepreneurs embrace change and uncertainty. They
view obstacles as opportunities to learn and grow. They adapt
when needed, persevere when the going gets tough, and maintain
a positive outlook in the face of adversity.
The Role of Resilience in Entrepreneurship

23. Building Resilience
1. Adaptability:
In the face of change or unexpected challenges, adaptability
allows you to pivot and find new paths to success.
2. Perseverance:
Resilience doesn't mean you won't face failures; it means you
won't let failures define you, resilient entrepreneurs don't give up.
They see failures as valuable lessons on the path to success.
3. Optimism:
Maintaining a positive outlook is crucial. This positive attitude is
contagious and can inspire teams to stay motivated during tough
times.
4. Resourcefulness:
It involves making the best use of available resources and
seeking out new ones when necessary.
Developing a Resilient Mindset

24. Proactive Mindset Towards Risk
Embrace Learning:
• Rather than fearing failure, view it as a chance to learn and improve. Resilience is built
through setbacks.
Learning
Seek Guidance:
• seek advice and mentorship., earning from others' experiences can help them
navigate risks more effectively.
Seek
Think Ethically:
• importance of ethical decision-making with upholding values like honesty and fairness
in the face of risk builds character and trust.
Think
Take Initiative:
• take initiative and be innovative in solving problems. This proactive approach can turn
risks into opportunities.
Take

25. Summarize Key Takeaways
Entrepreneurial
Risk Management
Values Matter Resilience is Key Proactive Mindset Empowerment

26. Apply What You've Learned
In Your Studies
In Your Career
In Entrepreneurship
In Society

27. Q & A

28. Profile
Dr. Hendry Hartono SE., MM. CIRR., CLMA.,
CSCMP
Associate Professor – Senior Faculty Member
BINUS Business School - Undergraduate
hhartono@binus.edu ; hartono@binus.ac.id
0817-018-1718
Scopus ID : 56236903300