Risk Analysis in the Halal Food Industry: An Exploratory Study

Abstract

Globally, there has been significant interest in literature on risk analysis and management in the past decade or so. However, all these developments revolved around the financial system, due to extensive development and innovation of its products and services. While halal food industry has grown substantively in the last few years, appreciation of its risk character and profile is still evolving. The needs to have proper risk management stems from recent food scandals on religious belief, human health and even on causes of death indicate that firms and consumers are vulnerable to integrity risks in the halal food industry. The recent cases and issues involving halal-certified products require the halal food industry to have a robust risk management practice. Risk analysis in the halal food industry should focus on three policies: risk assessment, risk management and risk communication. Mitigating the possible risk and maintaining the confidence on quality products such as halal food is very challenging, if not impossible. Our aim in this research was to analyse risk exposure in the halal food industry with the main objectives to identify risk management practice in the halal food industry. Analysis risk in the halal food industry is simple and experimental; therefore, this study will gather relevant information and come out with framework on risk analysis for the halal food industry in Malaysia.