Integrating Risk Management into Business Process Models for Small-scale Shrimp Industry in East Java, Indonesia

Riski A. Lestariadi^1, and Masahiro Yamao¹

¹Graduate School of Biosphere Science, Hiroshima University, Japan

Cite this paper:
Riski A. Lestariadi and Masahiro Yamao. Integrating Risk Management into Business Process Models for Small-scale Shrimp Industry in East Java, Indonesia. American Journal of Rural Development. 2017; 5(6):144-150. doi: 10.12691/ajrd-5-6-1

Abstract

The complexity and dynamism in shrimp industry have increase uncertainties and subjectivities in the risk analysis process. Identifying the business process in shrimp farming, and the sources risk that may arise in each process is the critical factor in maintaining the sustainability of shrimp industry. This study presents a risk analysis based on the business process modeling, which is a useful tool to identify the sources of risk and management strategies along the shrimp business process. The results revealed that there are three primary business processes in small-scale shrimp farming, consist of pond preparation and inputs for production, production, and harvesting and marketing. From the total of 32 sources of risk identified, the process of production accounted for 20 risk sources. This fact represents that the shrimp farmers more concerns on preventive actions to avoid unexpected event occur during process of production stage compare with other stages. Regarding management strategies, the results showed that the shrimp farmers develop a wide variety of and conversely, a risk management strategy can apply to mitigate diverse types of risk source along the business process of shrimp production.

Keywords:
risk management shrimp farming small-scale business process

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