RISK ASSESSMENT AND RISK MITIGATION IN A SUSTAINABLE TUNA SUPPLY CHAIN

Abstract

This study aimed to conduct a risk assessment and minimize the risk of sustainable tuna supply chains in Ambon. The House of Risk (HOR) approach was utilized in this study to identify risk occurrences and risk agents in three aspects of sustainability. The study results identified 15 risk events and 26 risk agents consisting of four risk events and five risk agents on the environmental dimension, five risk events and eleven risk agents on the social dimension, six risk events, and ten risk agents on the economic dimension. The HOR phase I shows that the risk agent with the highest Aggregat Risk Priority (ARP) value is the lack of environmental management system standards (A4), and the risk agent with the lowest ARP value is inhumane treatment/harassment (A12). Based on the Pareto principle, 7 Risk Agents will be prioritized to be handled according to the highest ARP value, such as lack of environmental management system standards (4170), lack of quality control inspection (3790), lack of maintenance management (3346), lack of quality control from suppliers (3000), lack of enthusiasm for work (2984), decreased level of discipline (2832). The internal communication system of the company is poor (2538). Furthermore, 15 mitigating techniques are proposed. Twelve mitigation technique steps are chosen from 15 recommended solutions to prevent the causes of risk based on the effectiveness to difficulty (ETD) value from HOR phase II.