Managerial implications of North Sumatera coffee export risks using the failure mode and effect analysis method

Abstract

Managing risk can be conducted starting with the process of identifying and measuring the magnitude of the risks occurred. The study of coffee export risk management research is based on the experience of experts in the coffee export business. Risk management is the most important element to protect companies from the risk of losses that may arise. The purpose of this study is to examine the types and sources of risk, as well as the magnitude of the risk. Then give a proposed strategy in the risk of North Sumatra coffee exports. The location of the research determined purposively. The research data are primary data obtained from interviews using questionnaire. The data analysis method used is Analytical Network Process (ANP) and Failure Mode and Effects Analysis (FMEA). The results showed that the biggest risk to coffee exports was in production activities (procurement of raw materials until it ready to be sent) while the lowest risk was at policy risk. The exporters need to give sustained guidance to farmers in yielding products in accordance with standards and be able to cooperate with the government in the continuity of export.