Strengthening Risk Management Capacity through ISO 31000-Based Assistance and Risk Register Development: A Case Study of Idola Cookies MSME
DOI:
https://doi.org/10.33394/jpu.v7i4.23034Keywords:
Community Empowerment, Free Nutritious Meals (MBG), ISO 31000:2018, MSME Resilience, Risk RegisterAbstract
Idola Cookies, a bakery micro, small, and medium-sized enterprise (MSME) in Jatimulyo Village, Klaten, Indonesia, shifted from a made-to-order business model to supplying 2,000–3,000 loaves per product type in each production cycle for the Free Nutritious Meals (MBG) program, while also fulfilling seasonal demand during Ramadan. This expansion increased the business's exposure to risks associated with production capacity, workforce availability, equipment, raw material supplies, product quality, food safety, and cash flow. However, the owner had no prior knowledge or experience in implementing a formal risk management framework. This community service program aims to introduce risk management principles and strengthen the MSME's capacity to manage business risks through hands-on assistance in developing a risk register based on ISO 31000:2018. The program involved introducing risk management principles, assisting the owner in establishing the business context and risk criteria, identifying risk sources and events, analysing and evaluating risks, and formulating appropriate risk treatment strategies. Program evaluation was conducted through observation, interviews, and an assessment checklist to assess partner participation, understanding, and the completeness of the resulting risk register. Data were analysed descriptively and qualitatively, while risk levels were determined using a 5 × 5 likelihood–impact matrix. The program resulted in a risk register documenting 18 risks across eight categories, comprising six very high, eight high, and four medium risks. Five risk treatment strategies were formulated: avoidance, reduction, transfer, deferral, and retention, with risk reduction emerging as the predominant strategy. The resulting risk register provides an initial practical framework for incorporating risk considerations into routine business decisions and promoting more systematic business management.
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