The implementation of risk management based on ISO 31000:2009 framework at SME bamboo Bantul, Yogyakarta

In every large, medium, or small industrial business, there must be a risk that occurs in the business process. Poor relations and communication between buyers and suppliers of bamboo can result in the production of bamboo fabrications not working well because raw materials are not available or the quality of stuff is not good enough. The research conducted in bamboo SME (Small Medium Enterprise) aimed to identify potential risks and develop mitigate strategy. The proposed methods used ISO 31000:2009 to identify risks and SCOR methods to define improvement steps. The use of ISO 31000:2009, such as the module by Lark (2015), refers to the use of ISO 31000:2009 being more focused on risk management in SMEs. Further, it identified nine risks with three levels of categories, namely low, moderate, and high. The group of high-risk types has three members with risk codes E1, E2, and E6. The group of medium types has three members with risk codes E3, E4, E5, E8, and E9. While from the low category, there is one risk with code E 7. According to Hight risk categories, we propose to improve the planning of raw materials, production schedule, and demand management. To sum up, this research has successfully applied modern tools in managing risk in an integrated manner in SMEs effectively by identifying risks and mitigation efforts to reduce the level of risk in the bamboo SME industry.