Sustainable risk mitigation in manufacturing company

Abstract

Companies that are not aware of any risk events and sources of risk that occur in the company, will not be able to formulate an appropriate strategy in mitigating risk. This research aims to identify, measure and plan risk mitigation strategies related to sustainable risk. Sustainable risk is related to risks from environmental, economic and social aspects. This research takes a case study in one of the manufacturing companies in Indonesia. This study uses the Failure Mode and Effect Analysis (FMEA) method to identify events and sources of risk and the House of Risk (HOR) to analyze and design risk mitigation. This research identified 14 risk events and 39 sources of risk that occurred in the company. By using the HOR method, 15 priority sustainability risk mitigation actions were obtained.