Risk Mitigation Via Integrating House of Risk and Probability Impact Matrix in Halal Food Supply Chain

Fitra Lestari (Department of Industrial Engineering, UIN Sultan Syarif Kasim, Riau, Indonesia)
Ahmad Mas’ari (Department of Industrial Engineering, UIN Sultan Syarif Kasim, Riau, Indonesia)
Silfia Meilani (Department of Industrial Engineering, UIN Sultan Syarif Kasim, Riau, Indonesia)
Irsan Nuari Riandika (Master student of Management, Riau University, Indonesia)
Abu Bakar Abdul Hamid (Putra Business School (PBS), Universiti Putra Malaysia, Malaysia)

Jurnal Teknik Industri
Vol. 22 No. 2 (2021): August

One of the food industry challenges is how to identify sources of risk by considering the halal concept. This study aimed to identify risks and determine risk handling priorities in the supply chain strategy of halal food.  This research offered integration of the house of risk and the probability impact matrix to manage risk mitigation in the halal food industry. A case study in the halal food industry was applied in Indonesia based on  Supply Chain Operations Reference (SCOR). This study identified 27 risk events and 31 risk agents through 2 phases. Result research showed that employees who did not have special skills (A20) had the highest risk. Moreover, reward and punishment to employees (PA16) was the best proactive action for making effective improvements. The implication of this research is to provide recommendations to management in mitigating risks in the halal food industry.