Risk Management Framework Design Based on ISO 31000 and SCOR Model

Abstract

In every large, medium, and small industrial enterprise, risks must occur in the business process. The study conducted at one of the SMEs in the Bantul, Yogyakarta, namely Rajut Bamboo SME. Further, the obstacles that often occur are delays in delivery, product damage, and also other obstacles. The risk management framework has an important role in this study. Therefore, the approach used ISO 31000 method and the SCOR Model in making a proposed framework to improve risk management performance. Based on the proposed framework that has been made, the risk identification process in Rajut Bamboo SME has 32 risks in its business processes. The risk mitigation proposal is carried out on seven risks in the high-risk category. The risk mitigation results are obtained in the risk codes D3, M2, P5, and A1 down to the medium risk category, then the risk codes D9, D2, and M6 down to the low-risk category.