Enterprise Risk Management On Msmes Creative T-shirt Production in Bantul Area, Yogyakarta Using House Of Risk and Root Cause Analysis Methods

Abstract

The economy in Indonesia cannot be separated from the role of MSMEs. MSMEs have a significant role in the country's economic growth, which is shown by the ability to absorb 97% of the total workforce and collect up to 60.4% of the total investment. Meanwhile, in Yogyakarta, MSMEs contributed 95% to the economic growth of Yogyakarta city. Bantul region, as the largest MSME contributor to Yogyakarta, can rise up by relying on the Creative textile MSME sector, which is growing rapidly in this modern era. However, obstacles in the form of risk are often an obstacle for MSMEs in carrying out the production process on a daily basis. Therefore, this research aims to map any constraints or risks that may occur along the production line and hinder the production process. House of Risk (HOR) method will determine the rank of risk. Then the causes of the risk priority as the House of Risk method output will be identified by using Root Cause Analysis which are why - why analysis and fish bone diagram. The result reveals 7 priority risk agents, and 7 priority handling strategies are generated as the possible solutions.