2ND TASK OF BUSINESS RISK MANAGEMENT

AFTER MIDTERM EXAM

IUP – X & Y class
DEC-07, 2021

1. Write a paper that describe

Integrated Risk Management Planning Proposal
Imagine your business face many VUCA-volatility, uncertainty,
complexity, and ambiguity. Your boss wants you to design a planning
proposal to manage it.
2. The paper must describe about: target / context or scope, identification,
assessment and evaluate in process risk management model (see below 2
diagram model as your standard content of your paper).
3. Area topic you can choose as: marketing manager, human resource
manager, operation manager, or risk manager (choose one of these
choices).
4. References:
4.1 Business Risk Management, any book you can use.
4.2 Business Risk Management Consultant (World Class).
4.3 Any journal topic that have relate with or use in risk management
practice, or analysis (1 better 2 journal)
You can use one reference, but better if mix or combination of three.
5. Please put your citation reference resource
6. Paper at about 6-7 pages.

Submit on : mulyoharyanto1957@gmail.com max at: December 23, 2021 –

23.59pm

Format file: BRM-2Task#...X or Y...-class#student name#student-NIM

Follow your planning from: Establishment context – Treat Risks
Or second mode

(1st or 2nd model , actually there is no principal differences)

 MANAGEMENT RISK

CV. IDOLA BAKERY

Introduction

CV. Idola Bakery is a company that sells cakes and breads based in the city
of Semarang. CV. Idol bakery is a bakery company that is much favored by the
public. Until the end of 2021, this company already has many branches and
already has many partners spread across Indonesia. The Company's vision is to
make Idola Bakery products one of the alternative main dishes (breakfast,
lunch or dinner) for Indonesian people. The company's mission is to
continuously improve product quality and develop new healthy and nutritious
products.

However, in carrying out its business activities, CV. Idola Bakery faces
several operational problems, namely human resource risk, technology risk,
process risk and external risk. At the risk of human resources in the form of a
lack of skills of employees which results in a decrease in product taste,
technological risk in the form of inputting data that is not appropriate resulting
in company data that is not in accordance with the original data, process risk in
the form of a production process that is not optimal which causes product
defects until the product is not marketable and external risks in the form of
competitors who have a good corporate image around the central location.

If this happens continuously, it will result in losses for the company. Those
are some of the risks that often occur in the cake and bread business. In
addition, the problem in several developing countries, including Indonesia, is
that cakes and bread are not staple foods that are used to fulfill human needs,
but are snacks that humans don't need every time. Many factors have caused
the decline in sales in the cake and bread business, such as the people's appetite
for cakes and breads has decreased, the people's purchasing power is low and
the number of businesses in the same field has resulted in the amount of
production being unbalanced with sales, as a result, many cakes and breads are
sold. remaining and expired.

Businesses in the culinary sector need to also pay attention to risks in

management, both internal and external, because how big the company is, of
course, cannot be separated from all the risks that hinder the company's goals.
Therefore, companies need to control these risks so as not to cause excessive
losses for the company, namely by managing risk management.

Risk management can prevent companies from failing. Some of the losses,
such as the destruction of production facilities, might cause the company to be
closed, if previously there was no preparedness to face such a disaster. With
this risk management the company can avoid the destruction of risk
management can reduce expenses by preventing or reducing losses. (Herman,
2006)

In this regard, the company must try to minimize the occurrence of

operational risk in the form of human resource risk in the form of lack of
employee skills, technological risk in the form of inappropriate data input,
process risk in the form of a production process that is not optimal and external
risk in the form of competitors who have a good corporate image. around a
central location. The risks posed to this company have not been handled
properly due to the weakness of the management control system carried out by
the company's internal and external parties. Therefore, to minimize this, good
operational risk management is needed in its management. Based on this, I am
very interested to discusse the operational risk management process at CV. Idol
Bakery which will be discussed in this discussion.

Discussion

Operational risk is any risk stemming from your company's business

processes that could result in loss. This loss is not always financial; things like
reputational risk also fall under this category. Operational risk management
(ORM) is a management that has the function of protecting the company from
potential risks that will occur and minimizing losses that may occur.

According to Djohanput (2006) in Normaria Mustiana Sirait (2016),

Operational risk is caused by failure or imperfection of internal processes,
people and systems or from external factors. These risks will have an impact on
the entire business. Operational risk can occur, among others, due to
malfunctioning of internal processes. Not only that, operational risk can occur
due to human error, external factors, system and process failures. Operational
risk classification is generally divided into 4 (four) categories, namely human
resources (HR), technology, processes, and external factors.

The model in operational risk management planning that I use is as follows:

Figure 1. Model Operational Risk Management Planning

A. Identify Risk
a. Human resource risk
Human resource risk is a risk that occurs because of
workers. These human resources are employees. Employees are the
most valuable asset in a company. (Retna, 2018) However,
 employees are a factor that is often the cause of operational risk
events. As happened in CV. Idol Bakery. The causes of human
resource risks that occur in CV. Idol Bakery is an inadequate
employee training.
There are several organizational phenomena that can be
categorized as triggering symptoms for the emergence of training
and development needs, namely: non-achievement of work
achievement standards, employees unable to carry out their duties,
and unproductive employees. Symptoms that commonly occur in
organizations include symptoms caused by these conditions,
causing the main symptoms in organizations that require work
handling, namely: low productivity, high turnover, high negligence,
and low employee morale
b. Technology Risk
Technology risk is a risk that occurs due to the use of
technology and systems. Currently, companies are very dependent
on systems and technology that support production process
activities, the use of technology like this poses a lot of operational
risks. (Retna, 2018) Technological risk events that occur in CV.
Idola Bakery is caused by: Inadequate control of data changes,
namely the existence of a system that is not controlled. Data input
error is a data request for goods from a supplier that does not match
the existing data, because there are material limitations.
c. Process Risk
Process risk is the risk of potential deviations from the
expected results of the process due to deviations or errors in the
combination of data sources (HR, expertise, methods, technology
equipment and materials) and due to changes in the environment.
Procedural errors are a form of embodiment of process risk. (Retna,
2018) Process risks that occur in CV. Bakert's idol is in the form of
a production process that is not optimal.
 d. Eksternal Risk
Externality risk is a factor that can cause operational risk
caused by natural or man-made disasters, the business environment
and competition and occurs outside the company's direct control.
External risk events are generally low frequency/high impact events
and as a consequence can cause unpredictable losses. (Retna, 2018)
External risks that occur in CV. Idola Bakery is a competitor who
has a good corporate image around the central location.
B. Analysis Risk
The risk analysis that occurs at CV Idola Bakery is as follows:
Table 1. Risk Analysis CV Idola Bakery

Risk Analysis Impact Mitigaton Level of

difficulty
Human Lack of skills Decrease in the Establish a training 3
resource risk of employees quality/taste of program that is carried
at work the products out regularly, for
produced example: 1x/2 months
aimed at employees.
Technology Incorrect data Company data Always carry out 2
input that does not supervisory actions to
match the the data input section
original data
Process Production Causing Establish a training 3
process that product defects program that is carried
is not optimal so that the out routinely, for
product cannot example: 1x/2 months
be marketed aimed at employees of
the production
process.
Eksternal There are Leads to Continue to improve 5
competitors increased the quality of the
who have a competition company so that the
 good and a decrease company is able to
corporate in the number compete with
image around of consumers competitors
the central
location.

The degree/level of difficulty of implementing preventive measures

can be determined by several factors, including through the design of the
costs to be incurred, the required resources and the required timeframe. The
level of difficulty of implementing preventive measures is measured using
a likert scale of 1 to 5. A scale of 5 indicates the most difficult level in
implementing preventive action, then a scale of 1 indicates the easiest level
in implementing preventive action. The number scale from 1 to 5 is shown
in the following table:

Table 2. The number scale

Scale Description
5 Mitigation actions are very difficult to implement
4 Mitigation actions are difficult to implement
3 Mitigation actions are quite easy to implement
2 Mitigation actions are easy to implement
1 Mitigation actions are very easy to implement

C. Evaluate Risk

Risk evaluation is carried out through a monitoring process that has

previously been carried out. The monitoring stage is carried out on
operational risks that occur in CV. Idola Bakery is to use a monitoring and
control form that has been prepared in such a way in advance. This form
contains a job description and is made within 30 days. After 30 days, we
can see how things are progressing and can plan an evaluation of these
risks.

Closing
 Based on the description above, it can be concluded that in carrying
out its business activities, CV. Idola Bakery faces several operational
problems, namely human resource risk, technology risk, process risk and
external risk. To overcome this problem, integrated risk management is
needed to prevent other losses from occurring. The risk management
consists of the following processes: risk identification, risk analysis and
risk evaluation. With the implementation of risk management, it is expected
to prevent the company from failure.

Reference

Ajeng Retna Maharani. 2018. Thesis. Perancangan Manajemen Risiko

Operasional Di PT.X Dengan Menggunakan Metode House Of Risk. Hlm.
1-140.

Darmawi Herman, Manajemen Risiko, (Jakarta: BUMI AKSARA 2006) h.

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