Analysis of the Effect of Risk Management Implementation on Business Sustainability UMKM in Semarang City

Abstract

Risk management is a structured approach to identifying, analyzing, and addressing risks that may hinder the achievement of business objectives. The purpose of this study is to understand and analyze how risk management can influence the sustainability of Otako Takoyaki and Whatever. The method used in this study is a qualitative approach to provide an opportunity to gather in-depth information about the implementation of risk management in this UMKM. Findings obtained through interviews, observations, and documentation reveal that Otako Takoyaki and Whatever have implemented risk management in their business practices. This is evident in how the business owners and staff handle changes in conditions, such as a decline in consumer purchasing power and an increase in competitors with similar business concepts. Despite these two factors, which are considered to potentially impact business sustainability, Otako Takoyaki and Whatever demonstrates that effective and efficient risk management practices can maintain operational continuity, as evidenced by the business's continued existence to this day.