Articles

Integrating ERM with HACCP for Enhanced Efficiency in SME Beverage Manufacturing: The Case of SME Beverage Manufacture Company in Rembang, Indonesia

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This study presents an approach to determining the most impactful risks faced by an SME beverage manufacturing company in Rembang, Indonesia. Indonesia’s food and beverage market is highly competitive, especially for small and medium-sized enterprises (SMEs) that aim to sustain and grow their businesses. Focusing more on their business strategy, these SMEs often overlook risk management, which can lead to significant losses. The study employs a methodology that combines Enterprise Risk Management (ERM) with Hazard Analysis Critical Control Points (HACCP) to detect and evaluate potential risks in the production process, ultimately providing recommendations for the best possible corrective actions to manage these risks. The ERM framework highlighted three major risks associated with defective products, water shortage, and blackout, while the HACCP analysis pinpointed five critical control points (CCPs) in the production process of boiling, cooling, mixing, filling/bottling, and packaging. Based on these results, the study suggests corrective actions of installing backup generators, securing additional water supplies, and implementing homogenizers will benefit the company.

Enterprise Risk Management (ERM) Practices to Achieve Long Term and Sustainable Organization’s Goals: Case of Institut Teknologi Bandung (ITB)

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Every choice made in the pursuit of objectives has its risks. From day-to-day operational decisions to the fundamental trade-offs in the boardroom, dealing with uncertainty in these choices is a part of the organizational lives. A strategy is nothing more than a commitment to a set of coherent, mutually reinforcing policies or behaviours aimed at achieving a specific competitive goal. In order to ensure the implementation of efforts and the allocation of resources to achieve strategic goals, top management should conduct integrated risk management practices to all activities/initiatives of the organization’s management, both individually and collectively. Risk management is an intrinsic part of business planning and decision making. No direction is taken without looking at the potential risks and comparing them against the organization’s risk appetite.
This paper aims to research in general the practice of enterprise risk management within Institut Teknologi Bandung (ITB) as a well-known and public-state-owned university in Indonesia. This research concludes that the enterprise risk management implementation is not fully implemented yet within ITB as an enterprise. Almost all respondents agree that the implementation of enterprise risk management has a positive and significant influence on the organization’s objectives achievement. Improving university performance overall will require an effective enterprise risk management practice. Author highly recommends ITB to adopt risk management practice based on ISO-31000 standard, and it can be combined with other risk management standards available nowadays if necessary. ITB needs to start the implementation at the soonest as possible, in order to maintain its strategic position as a top university in Indonesia, increase its competitive advantages to compete in the global scale, and at the same time achieving its vision and mission in a long-term and sustainable manner.