<![CDATA[General Background Public sector service delivery frameworks require robust operational risk management to maintain high standards of institutional performance and administrative efficiency. Specific Background The Micro, Small, and Medium Enterprises (MSME) service system at the Cooperative Office of Sidoarjo Regency frequently encounters administrative hurdles and operational risks during licensing workflows. Knowledge Gap Existing risk assessments seldom evaluate how integrated Failure Mode and Effects Analysis (FMEA) and Fault Tree Analysis (FTA) methodologies address specific bureaucratic bottlenecks in public institutional service frameworks. Aims This study identifies, evaluates, and mitigates operational risks within the MSME public service system using combined FMEA and FTA techniques. Results Findings demonstrate that licensing delays constitute the most critical risk category, driven primarily by multi-layered bureaucratic procedures, manual document verification, and unintegrated information systems. Novelty A systematic public sector risk mitigation framework combining FMEA prioritization with FTA root-cause diagnosis is applied directly to regional cooperative licensing operations. Implications Public institutions can streamline administrative workflows, standardize standard operating procedures, and implement digital data integration to elevate overall service quality and user satisfaction. Key Findings Highlights Licensing delays emerge as the highest priority risk factor requiring immediate administrative intervention. Layered bureaucratic workflows and manual verification practices are identified as primary root causes of service bottlenecks. Systemic digital integration and procedure standardization significantly improve public administrative responsiveness. Keywords Umkm service system, Operational risk, Failure mode and effects analysis, Fault tree analysis, Risk mitigation]]>
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