An INTEGRATION OF SUSTAINABILITY-BASED RISK MANAGEMENT IN THE TRADITIONAL FOOD INDUSTRY CASE STUDY OF SHRIMP PETIS IN SIDAYU, GRESIK
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Abstract
The local food industry plays a crucial role in national food security, yet is vulnerable to various risks that can disrupt business sustainability. This study aims to identify, assess, and formulate risk mitigation strategies based on three sustainability aspects: operational (economic), environmental, and social. A case study was conducted on the traditional shrimp paste industry in Sidayu District, Gresik Regency. The identification results revealed 23 risk events and 16 risk agents, with the operational aspect having the highest number of risks. Using the House of Risk (HOR) method and a 70:30 Pareto analysis, four priority risk agents (A8, A13, A12, A11) were identified, contributing 66% of the total Aggregate Risk Priority (ARP) value. Based on HOR 2, four main mitigation strategies were formulated, with the highest priority being the creation of written Standard Operating Procedures (SOPs). SOPs were deemed the most effective because they were able to mitigate cross-aspect risks comprehensively, maintain product quality, improve efficiency, workplace safety, and support workforce regeneration. These findings emphasize the importance of an integrated risk management approach with sustainability principles to support the competitiveness and sustainability of the local food industry in an ethical and sustainable manner.
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References
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