Risk Management in Petrochemical Industry Development Projects Using WSDOT (Washington State Department of Transportation) Method

Abstract

Petrochemical industry development projects are highly complex endeavors characterized by a range of risks that can significantly affect their success. These projects require advanced technologies, specialized materials, and large-scale operations, making effective risk management essential to ensure project success. This study focuses on managing risks in Work Package-2 (WP-2) of Project XYZ, a critical component in Indonesia's petrochemical industry development. The Washington State Department of Transportation (WSDOT) method was applied to identify, assess, and mitigate risks associated with the project. The study highlights various risk categories including construction, technical, health and safety, environmental, social, legal, financial, and supply chain risks. Risk identification was carried out through document analysis, interviews with project management personnel, and on-site observations. Both qualitative and quantitative risk assessments were conducted using risk matrices and Monte Carlo simulations. The findings reveal that the WSDOT method effectively manages risks by providing a structured framework for continuous risk monitoring, risk response strategies, and adaptation to emerging challenges. Key risks with significant financial and schedule impacts were identified, with mitigation strategies focusing on quality control, safety compliance, and project monitoring. This study offers valuable insights into the application of structured risk management methodologies in large-scale construction projects and provides strategic recommendations to enhance risk management practices in petrochemical industry development. The results contribute to improving project resilience, optimizing resource utilization, and ensuring timely and cost-effective project completion.