House of Risk (HOR) Approach to Manage Risk involving Multi-stakeholders: The Case of Automotive Industry Cluster of Multifunctional Rural Mechanized Tool (MRMT)

Abstract

The agricultural sector is one of the potential sectors for the economic development of the Indonesian nation and the improvement of rural community welfare. Therefore, it needs to be well-managed, including through the provision of adequate supporting facilities such as transportation equipment that is suitable for the characteristics of the agricultural sector. PT KMWI is one of the companies that produces specialized transportation equipment designed to support agricultural activities in rural areas, known as the Multifunctional Rural Mechanized Tool (MRMT). The production involves several businesses and industries that are established within an MRMT automotive industry cluster. Effective cooperation and collaboration among the stakeholders in the industry cluster significantly determine the efficiency and effectiveness of the products produced. Therefore, it needs to be well-managed, and risk management needs to be implemented to maintain its functional stability using the House of Risk (HOR) method. From the application of HOR 1, the multistakeholder approach yielded the Combined Aggregate Risk Potential (CARP), and 6 priority risk potentials were selected based on a Pareto chart, which resulted in the determination of 13 mitigation actions. The risk potential with the highest CARP value among the priority risks is risk factor (A4) inaccurate demand forecasting. Then, the 13 mitigation actions were assessed using HOR 2, the multistakeholder approach, to obtain the Effectiveness to Difficulty (ETD) value of each mitigation action for every stakeholder.