Open AccessHouse of Risk Approach for Assessing Supply Chain Risk Management of Material Procurement in Construction Industry
Author(s) -
Tarmizi Ahmad,
Aries Susanty
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/598/1/012060
Subject(s) - procurement , supply chain , purchasing , supply chain risk management , risk management , risk analysis (engineering) , business , risk assessment , supply chain management , operations management , computer science , service management , finance , marketing , engineering , computer security
The purpose of this study is to identify the potential risk events in material procurement supply chain and to arrange risk agents priority using House of Risk (HOR) approach where priority can be the basis to create mitigation strategies. The approach started with HOR Phase 1 by mapping supply chain activities using Supply Chain Operation Reference (SCOR) model and risk assessment. There are 30 risk events in supply chain are adapted from several previous studies, but after the preliminary studies by deep interview with the Manager and the Purchasing Supervisor of Accounting Division obtained 23 valid risk events with 17 risk agents. Using the Aggregate Risk Potential (ARP) values and Pareto 80:20 principle, obtained 3 selected risk agents needs immediate handling with mitigation strategies. HOR Phase 2 with the mitigation strategies arrangement will be performed in the further study.