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ISSN: 1907-2341 (Print), ISSN: 2685-4031 (Online)

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Implementation of Principal Risk Management in the

Development of Changes in Educational Institutions

Rini Dewi Andriani

a, 1

, M Nasir

b, 2

, Ramadhani

c, 3

, Subban

d, 4

a, b, c, d

North Sumatra State Islamic University, Medan, Indonesia

rinidewiandria[email protected];

mnasiralhikmah890@gmail.com;

ramadhanimedan12[email protected];

[email protected]

ARTICLE INFO

ABSTRACT

Article History:

Accepted: 25 January 2024

Revised: 24 March 2024

Approved: 10 May 2024

Available Online: 1 June 2024

This article seeks to find out how the principal implements risk management

in developing any changes that occur in an educational institution. In this

research, a qualitative approach was used with the key informants in this

research being the Principal and Deputy of SMP IT Nurul Ilmi Medan Estate.

Meanwhile, the supporting informants in this research were teachers, staff

and students of SMP IT Nurul Ilmi Medan Estate. Field data was obtained

through observation, interviews and documentation. After collecting data,

researchers carried out data analysis. Based on findings in the field, it is

revealed that the role of leaders in change management includes creating

effective working relationships, shifting manager functions, leading by

example, influencing others, developing team work, involving subordinates

in decision making, making empowerment of subordinates a way of life; and

build commitment. Apart from his big role in bringing about change, a leader

must also have a mature strategy to make this change a reality.

This is an open access article under CC BY -SA license

Keywords:

Ethics

Permission

Maudhui's interpretation

Abdul Hayy Al-farmawi

1. Introduction

In everyday life the word "Risk" is commonly used in everyday conversation by most

people. Risk is part of individual and organizational work life (Silvia et al., 2022). Various kinds

of risks, such as the risk of fire, being hit by another vehicle on the road, the risk of being flooded

during the rainy season and so on, can cause losses if these risks are not anticipated from the

start. Risk is associated with the possibility of events or circumstances that could threaten the

achievement of organizational goals and objectives (Suparmin, 2018). The activities of a

business entity or company basically cannot be separated from risk management activities. The

operations of a business entity or company usually face business risks and non-business risks

(Astuti, 2015). Ghazali states that business risks are risks related to the company's efforts to

create competitive advantages and provide value for shareholders, while non-business risks are

other risks that the company cannot control (Al-Ghazali, 2014).

Risks related to this uncertainty occur because there is a lack or unavailability of sufficient

information about what will happen. Something that is uncertain (uncertain) can have beneficial

or detrimental consequences. According to Wideman, uncertainty that gives rise to profitable

possibilities is known as opportunity, while uncertainty that gives rise to detrimental

consequences is called risk (Wati et al., 2021). In recent years, risk management has become a

major trend in discussions, practices and job training (Achyar et al., 2021). This concretely shows

the importance of risk management in business and education today. In general, risk can be

interpreted as a situation faced by a person or company where there is a possibility of harm.

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If possible, what is encountered can provide very large profits even though the losses are

very small. As long as you experience a loss, no matter how small, it is considered a risk, because

risk carries significant costs. Imagine an incident where a shoe company experiences a fire.

Direct losses from this incident are financial losses due to burned assets (for example buildings,

materials, half-finished shoes, or shoes ready to be sold). However, indirect losses are also seen,

such as the company not being able to operate for several months, thereby stopping cash flow.

Another consequence is the failure to pay debts to suppliers and creditors due to the cessation of

cash flow, which will ultimately reduce the company's credibility and good relations with its

business partners.

Risks can be reduced and even eliminated through risk management (Agustina et al., 2023).

The role of risk management is expected to be able to anticipate a rapidly changing environment,

develop corporate governance, optimize strategic management, secure the resources and assets

owned by the organization, and reduce reactive decision making from top management (A.

Siahaan et al., 2021). An organization will experience change because the organization always

faces various kinds of demanding needs. These demands arise as a result of the influence of the

organization's environment (external and internal), which is always changing (Akmalia et al.,

2023). To deal with the factors that cause these changes, organizations must be able to adapt to

various changes within themselves. These changes are of course towards better organizational

development (Edison et al., 2016). To make changes towards the development of this

organization, it does not escape the emergence of various problems which can actually endanger

the continuity of the organization.

The problem of development is also a complicated problem that must be solved by

managers, because not only do organizations need to be developed, but also the people within

the organization also need to be involved in organizational development, in order to deal with

rivals and environmental demands. One of the important problems that can occur in

organizational change and development is conflict (Ode, 2015). However, in reality,

organizations often experience conditions that do not experience growth due to people's

reluctance to follow change, where change is considered to cause dis-equilibrium (loss of moral

balance). This results in societal ills or actions that are not in accordance with the provisions

applicable in the organization, so it is necessary to develop the organization to carry out

evaluation, adaptation, regeneration and innovation (Ihza, 2020).

Organizational development is a planned process to develop organizational capabilities in

ever-changing environmental conditions and demands, so that optimal performance can be

achieved by all members of the organization. Organizational Development is a program that

seeks to increase organizational effectiveness by integrating individual desires for growth and

development with organizational goals (Solikhan, 2015). Thus, it is necessary to manage risks

which are important for an organization, including school organizations because educational

activities cannot be separated from the existence of risks that can disrupt the continued

achievement of educational goals in schools. Educational institutions, like other organizations,

will always be faced with risks, whether risks originating from within or from outside the

educational institution. There are many problems that plague the world of education, starting

from the management of assets and finances by educational institutions to the low quality of

graduates produced from every level of school, all of which have a negative effect on the world

of education in Indonesia.

2. Method

This type of research is descriptive research with a qualitative approach . This research was

carried out at SMP IT Nurul Ilmi Medan Estate, a full day school program aimed at improving

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the quality of education at SMP IT Nurul Ilmi Medan Estate to be realized optimally. Research

informants are all parties who are deemed capable of providing complete information as data

that has been obtained and is acknowledged as being true. Research informants can be divided

into key informants and supporting informants. Key informants are informants who play a major

or main role in collecting information in research. Meanwhile, supporting informants are

informants who also complete the required data. The key informants in this research were the

Principal and Deputy of SMP IT Nurul Ilmi Medan Estate. Meanwhile, the supporting informants

in this research were teachers, staff and students of SMP IT Nurul Ilmi Medan Estate.

The data used in this research consists of two types, namely: primary data and secondary

data (Arikunto, 2016). Primary data was obtained through interviews with residents of SMP IT

Nurul Ilmi Medan Estate, direct observation and so on. Meanwhile, secondary data was obtained

through a study of various literature, documents and the like related to the object of discussion.

Field data was obtained through observation, interviews and documentation. After collecting

data, researchers carried out data analysis. In analyzing data, use qualitative descriptive

techniques to provide interpretations of research results or data which are realized in sentence

form. Data validity checking techniques that utilize something other than the data for checking

purposes or as a comparison against the data (Moleong, 2016).

3. Results and Discussion

Implementation of Principal Risk Management

Risk management is an important part of the management strategy of all entrepreneurs.

The process by which an organization that uses its methods can show the risks that occur in an

activity towards success in each activity from all activities. The focus of good risk management

is identifying and how to overcome risks. The goal is to add maximum sustainable value to the

organization. The main goal is to understand the upside and downside potential of all factors that

can have an impact on the organization. Risk management increases the likelihood of success,

reduces the likelihood of failure and uncertainty in leading the overall goals of the organization.

The availability of physical objects is the main support in the implementation of religious

character education through school culture. Based on this, building a learning construct based on

the value of worship needs to be supported by conditioning the physical and socio-cultural

environment at school which allows students to build daily morals at school that reflect the

embodiment of character. to be addressed. The existence of physical objects such as research

results is an effort to condition the physical environment to create a religious character. Apart

from that, one of the principles of developing a culture of noble morals in schools is the support

of facilities and infrastructure to create a school culture. The existing facilities and infrastructure

at SMP IT Nurul Ilmi Medan Estate are in accordance with research results, support the

realization and creation of a religious school culture, and also support the implementation of

religious character education. A leader's attitude of flexibility is reflected in the three main

elements that need to be possessed, namely suitability, alignment and obedience to principles. In

a suitable sense, a leader always regulates and controls his behavior according to the situation in

which the leadership process is carried out. In line, in the sense of directing his leadership

behavior in accordance with the tasks and realities of the organization he leads. Meanwhile,

obedience to principles is the leader's obedience or consistent attitude to his personality and

beliefs. Rivai revealed that the basis for these three things is leadership as a process and is an

interaction between fellow humans whose orientation is on action (Rivai et al., 2005).

To see clearly the role of leadership in change, including the role of the leader as a provider

of vision and strategy, this means that a leader is someone who is responsible for moving the

organization in the right direction. Next, the leader or principal establishes, disseminates and

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develops a clear vision and shows new ways in the future. Apart from that, he provides

inspiration and knowledge to his members and designs strategies to achieve the organization's

vision and mission. The role of a leader as a politician and spokesperson, meaning that the leader

acts as an advisor, spokesperson and as a negotiator towards his subordinates. He also builds

relationships using information sources. The role of the leader as a coach, meaning that the nature

of building a team and developing people in the organization has been embedded within the

leader, this is his responsibility. Apart from that, the leader also plays a role in building trust

which is the basis of the organization and he is also an encouragement and inspiration to each

individual.

The role of the leader as a change agent in a position for the future. He had a great influence

in decision making for change and he introduced new programs, creating strategies for

cooperation with the public. At times he was an organizational restructurer and an innovator. As

an Agent of Change, a leader is an individual who is responsible for changing the system and

behavior of organizational members. Apart from that, more specifically, Wibowo stated that

there are several roles of leaders in change management, including: creating effective working

relationships, shifting manager functions, leading by example, influencing others, developing

team work (Wibowo, 2020) , involving subordinates in decision making (AKIN Siahaan, 2007),

makes empowerment of subordinates a way of life; and Building commitment. Apart from his

big role in bringing about change, a leader must also have a mature strategy to make this change

a reality (A. Siahaan et al., 2021).

In fact, according to the author's opinion, effective leadership will encourage subordinates

to convert efforts into performance and be able to accept change. At this stage change begins, as

problem solving to solve. At this stage, the school community needs to build togetherness and

effective communication, because with good communication, a harmonious atmosphere will be

created which will give birth to a cohesive work team in order to achieve the goals of change.

As reinforcement from the author, it is necessary to understand that the change

management steps above need to be understood by school principals in fighting for change

management as one of the crucial challenges of school management today. Whatever the type of

goal to be achieved from a change, every change must be prepared properly following certain

steps. Every organization faces increasing challenges in building its capacity to make changes,

not only in responding to the pressures of technological development or becoming increasingly

competitive but also in anticipating change. This change is a fact in organizational life today and

change is something that will continue to happen so it must be managed well.

Increasing Visionary Leadership in Change Management

Leadership capacity is how you are able to handle something optimally, able to spend

maximum time on your work, able to spend maximum time according to your work. Therefore

capacity will be very closely related to your physical endurance or endurance. Your health is

very important to show your capacity . Other people can prepare a program plan in two days, so

what is called high capacity is that you are able to complete it in less than two days. And able to

do various things at the same time (Ishak et al., nd) . Improving leadership quality means efforts

to improve abilities, qualifications and competencies in leading an organization. The existence

of a leader is really needed by other people, so he must try to adapt to the demands of the

organization by improving and enhancing his own quality. In this case, leaders must have the

desire to improve themselves. Nation building cannot be realized without efforts to improve the

quality of leadership in all fields and levels. With leadership that is able to invite and encourage

the entire community to participate in development, it means that the dream of realizing a life of

better quality will be enjoyed equally.

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Improving the quality of leadership must be carried out continuously and continuously, it

must come from developing thinking abilities, so that it takes place as an effective process in

making decisions that will answer leadership activities in moving the people being led. Decisions

or policies that have been made must be communicated to all parties who will be moved towards

achieving common goals. Therefore, efforts are needed to improve effective communication

skills regarding various planned decisions or policies that will be taken.

Visionary leadership is a concept that can be described in detail and understood through

literature and theory. But the greater meaning of leadership is concrete action, a way of working

out a series of events. Visionary leadership can be seen in the framework of movement, change

and time. This is important because combining what happens in reality with theory is a necessity,

because visionary leadership is not assessed from a purely theoretical and ideological approach

(Kakiay, 2018) . Ideal leadership is a leader who always thinks in systems, visionary and is

intelligent intelligently, emotionally and spiritually. In order to build multi-intelligence, leaders

should have various types of intelligence where their attitudes, behavior, actions and words as

well as their conscience become better and more correct.

4. Conclusion

Leadership in educational institutions means carrying out a leadership process that

influences the resources of educational personnel (teachers and employees) to take joint action

to achieve goals where the goal is to manage change in the context of educational organizations,

namely a systematic process of planning, organizing, mobilizing and control carried out by

organizational managers to shift from current conditions to desired conditions, by empowering

organizational resources in order to achieve shared goals that have been set effectively and

efficiently.

Apart from that, the role of leaders in change management includes: creating effective

working relationships, shifting manager functions, leading by example, influencing others,

developing team work, involving subordinates in decision making, making empowering

subordinates a way of life; and build commitment. Apart from his big role in bringing about

change, a leader must also have a mature strategy to make this change a reality. among others:

change management steps that the school principal can take include: Must instill and make all

school members aware that certain changes need to be made. After being given an understanding,

the changes are implemented. The consequences of these changes can be very diverse, ranging

from simple to complex. In the final stage, the principal returns the school to a normal situation

or stabilizes the situation after the changes have been implemented. Risk management should be

continuous and develop processes that work within the organization's overall strategy and

implementation strategies. Risk management should be aimed at overcoming a problem in

accordance with the methods used in carrying out activities in an organization in the past, present

and future.

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