Operational Risks Identification of Fattening Company Business: Enterprise Risk Management (ERM) Approach

DOI

10.2991/absr.k.210609.081How to use a DOI?

Keywords

Identification, Risks, management, fattening company business

Abstract

The operational risk of cattle fattening company business runs from the selection of seeds to marketing the cattle ready for sale. These risks, if not properly handled, could result in the potential losses that can interfere with operational activities or even threaten the survival of the company business. This article tries to explain the highest risks are facing by the fattening company at Bengkulu city. Enterprise Risk Management (ERM) was employed to assess potential risks [8] PT. SRJ at Bengkulu City. The company chooses as ones of major fattening cattle in Bengkulu City. The results show that operational risk in PT. SRJ is carried out by assessing the 8 components of COSO Standard of Enterprise Risk Management. There are twenty three risks could occur in the cattle fattening process of PT. SRJ. Including five seed selection risks, four fattening risks, five feed management risks, three cage management risks and six marketing risks. Those were categories into four risks at the negligible level (the chance of occurring is small and the impact caused is relatively small), seven risks at the acceptable level (the impact caused is still within the tolerance limit and is still acceptable), seven risks at the undesirable level (risks to be wary of and significant impact) and five risks that are at the level of unacceptable (significant impact and can influence long term). In conclusion was the highest risk is the availability of feed, the increase in feed prices, the risk of cattle experiencing illness / death, cows experiencing stress and the risk of cattle not being sold.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - W. R. Meriyani
AU  - M. Romdhon
AU  - B. Sumantri
PY  - 2021
DA  - 2021/06/11
TI  - Operational Risks Identification of Fattening Company Business: Enterprise Risk Management (ERM) Approach
BT  - Proceedings of the International Seminar on Promoting Local Resources for Sustainable Agriculture and Development (ISPLRSAD 2020)
PB  - Atlantis Press
SP  - 541
EP  - 547
SN  - 2468-5747
UR  - https://doi.org/10.2991/absr.k.210609.081
DO  - 10.2991/absr.k.210609.081
ID  - Meriyani2021
ER  -