Determining Risk Mitigation Strategies for Sustainable Small and Medium Enterprises

Abstract

This study discusses the determination of risk mitigation strategies in small and medium enterprises. Risk mitigation is an effort made to reduce or eliminate the possibility of losses or negative impacts due to risks identified in an organization or project. This risk mitigation action is needed to control potential threats to product quality. Potential threats that will affect product quality can be mitigated by creating a mitigation action plan to reduce hazards. Risk mitigation analysis uses the House of Risk (HOR) analysis. Observations were made at the XYZ laying hen farm, located in Ngaliyan District, Semarang City, Indonesia. Based on the results of observations, there were chicken deaths with a probability of death of 0.0667% to 0.1333%. If not further identified, it can cause losses if the chicken dies due to contracting an infectious disease. In addition, there are still other risks that will affect the sustainability of the XYZ laying hen farm business. The Current Reality Tree (CRT) method is used to identify risks that can cause business failure in more detail. The results obtained by the CRT method are 26 causes of risk and 27 consequences that can occur if the risk occurs. The House of Risk (HOR) method is used to determine risk mitigation. There are two stages carried out. The final result of the HOR method stage 1 obtained 3 risk agents. Then, risk mapping was carried out and continued to the HOR stage 2. The results obtained 6 mitigation priorities as proposals to the company. Further research can be done by considering the dependence between risk events that may occur in the laying hen farm.