DETERMINATION OF RISKS IN THE RICE SEED BUSINESS PRODUCED BY CV MUGI BERKAH SEJAHTERAH IN GRESIK REGENCY

Abstract

CV Mugi Berkah Sejahterah was a company engaged in the agricultural sector, specifically in the production of inbred rice seed varieties. This study aimed to analyze the priority risks faced by the rice seed company, identify the root causes related to production, marketing, and financial risks, and provide practical recommendations for risk control within the company. This research applied both quantitative and qualitative approaches, with data analysis techniques using the Analytic Network Process (ANP) method and the fishbone diagram. These two methods complemented each other, where ANP was used to determine risk priorities, while the fishbone diagram was utilized to identify the root causes of those priority risks. The results of this study showed that the main risk faced by CV Mugi Berkah Sejahterah was the uncertainty of capital availability. The root causes of this risk covered several aspects, namely machine (equipment), man (human resources), method (process), material (supply), and environment. To control these risks, several practical recommendations were proposed for the company. In terms of machine (equipment), it was recommended to implement a digital financial management system. Regarding man (human resources), regular financial planning training needed to be conducted. From the method (process) perspective, the company could develop a more effective financing approach. For material (supply), inventory planning should have been based on demand forecasting to better align with market needs. Meanwhile, for the environment aspect, the company needed to build resilience against regulatory changes that could affect business sustainability.