Journal of Administrative and Business Studies
Details
Journal ISSN: 2414-309X
Article DOI: https://doi.org/10.20474/jabs-6.4.4
Received: 10 March 2020
Accepted: 20 May 2020
Published: 12 August 2020
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  • Risk management model development by integrating House of Risk model and ANP model


Christine Natalia, Chendrasari Wahyu Oktavia, Trifenaus Prabu Hidayat, Welhelmina Makatita

Abstract

In this study, the supply chain risk management model will be integrated using HOR and ANP model. HOR phase 1 is used to determine which risk agent will be prioritized in advance for precautionary measures and ANP to obtain the best alternative action. ANP is a tool to determine the correlation between risk mitigation and hence rank that mitigation based on the priorities. The second phase of HOR determines the correlation between risk mitigation and the event risk and its effectiveness based on its degree of difficulty to be applied. This study is conducted on 3 reputable manufacturing industries to be compared and analyzed. HOR2 is intended to prioritize the proactive actions that the company should pursue to maximize the cost-effectiveness of the effort in dealing with the selected risk agents in HOR 1. This research shows that risks apply differently to each company. Hence, the ANP ranking is different. Mitigation risk’s rank is determined from the second phase of HOR as it has considered the correlation aspect of risk agents and its degree of difficulty to be mitigated. Finally, special actions are applied to various risks, such as performance appraisal to the staff. Further study is needed, such as by ISM method in order to make mitigation actions are focused on the companies.