Managing and Mitigation of Risk at Batik Laweyan During the COVID-19 Pandemic

Abstract

The COVID-19 pandemic has severely impacted Indonesia's business sector, especially business at Batik Laweyan. Business at Batik Laweyan cannot be separated from the risks that cause disruption of sales and income earned. This study aims to identify the risks faced by Batik Laweyan and to provide alternative risk mitigation strategies for Batik Laweyan during the COVID-19 pandemic. The method used in this research is Failure Mode Effect Analysis (FMEA) which identifies risks by weighting the Risk Priority Number and Analytical Hierarchy Process (AHP) as an alternative strategy to determine the risk mitigation of Batik Laweyan during the COVID-19 pandemic. The results of this study processing FMEA data obtained a total of 12 risks and priority risks from each factor, namely the risk of changes in consumer behavior, the risk of decreasing demand, the risk of changes in the budget, and the risk of implementing large-scale social restriction (known as PPKM). To mitigate risk, 14 alternative strategies were developed, and priority mitigation strategies were selected using AHP. The priority mitigation strategies selected through the AHP method for each risk factor are optimally utilizing technology while realizing the digitization of MSMEs, innovation, and product shifting, producing products that are trending in the community and capable of being produced by MSMEs, improvement and cost control in production and purchasing of raw materials more structured and utilize e-commerce as a digital sales market and utilize digital as product promotion (Digital Marketing).

Keywords

• ahp
• covid-19
• fmea
• mitigation
• pandemic
• risk