THE EFFECT OF BUSINESS RISK MANAGEMENT IMPLEMENTATION IN
SMALL BUSINESS DEVELOPMENT IN BOARD GAMES MSMES
Introduction
Risk management is the most important activity in today's business world. As the
times evolve, business people face various challenges in various fields. According to an
expert named (Hery, 2016), he stated that these challenges come from various problems
such as technological developments, globalization, thinning margins, differences in
various products, and strict business regulations. With these challenges, business people
must implement risk management because if not, it will create various risks that will
threaten business survival.
With the development of the times, several changes have occurred, giving rise to
various innovative ideas from business people. One business that is quite developed now
is the coffee shop or café MSME. It can be seen that nowadays, the average person likes
a place that is beautiful, comfortable, and can be used as a hangout. So that business
people are competing to open coffee shops / cafes with different nuances to attract
consumers. With the development of coffee shops / cafes, it is certainly not far from the
risks inherent in its business operations and outside of its business.
Games are entertainment that is certainly much loved and surrounded by all ages,
ranging from children, adults, and the elderly. The number of types of games has also
spread throughout the world, and is relatively easy to find. As we know there are many
types of games both offline and online and the most famous today is online games. In
today's modern times, generally someone will spend a lot of time playing online games
alone. Online games are digital-based entertainment that can be played online at the
same time (Azis, 2011). Often a person plays games because they want to get rid of
boredom, boredom and want to improve their mood. Where, games are believed to be
able to change a person's mindset and control mood swing changes in a person.
UMKM Board Games Café opens the way and access to thinking of an owner or
founder of the "Board Games Café" to take the idea of a shop which he then modernizes
into a place to learn as well as a place to play that provides a variety of brain sharpening
games and can escape from gadgets for a moment and spend time with the closest
people. Not only that, they also provide food and drinks to accompany customers. When
someone learns and also plays. Where, playing and learning in one place is a business
idea that can increase creativity and open a person's mindset and problem solving. Based
on valid data sources obtained from the owner of the Board Games Café, these MSMEs
do not implement and focus on risk management, so the writing group will analyze what
risks are faced by Board Games Café, and what if Board Games Café applies risk
management to its business. Will it have an influence in the future? In addition, the
writing group will discuss the resolution of the risks described.
Board Games Cafe opens the way and access to thinking of an owner or founder of
the "Board Games Cafe" to take the idea of a shop which then modernizes it into a place
to learn as well as a place to play that provides a variety of brain sharpening games and
can put down the gadget for a moment and spend time with the closest person, not only
that they also provide interesting food and drinks to accompany when someone learns
and also plays. Where, playing and learning in one place is a business idea that can
increase creativity and open someone's mindset and problem solving. This cafe is
located at Ruko Permata Niaga Blok A no.6-8. In this proposal, our group will analyze
the risks that exist in the UMKM Board Games Cafe and describe these risks. In
addition, our group will discuss the resolution of the risks described.
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café that offers a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café.
Board Games Café first operated on May 19, 2021 at Komp. Permata Niaga
Regency shophouse block A No. 6-8, Baloi Indah, Batam City. The owner of this Board
Games Café is Felicia Elvina. She founded this café because she saw that there was no
board games café in Batam City café that provides a concept like this, so he was
motivated to establish a café with this concept because he wanted to give the impression
that when gathering at a café not only playing cellphones, but also playing games
together.
This UMKM sells a variety of delicious and pocket-friendly food and beverage
variants. For the most famous menu variations, there are nasi gila, creamy fried indomie,
beef lasagna, dalgone coffee, and iced creamy duo regal. The way to order this café can
be done by ordering directly to the store, and through a delivery system by ordering
menus on Instagram, Gojek, and Gofood applications.
This Board Games Café shares various attractive offers to attract consumers to visit
and try their products such as promos and new games. In addition, this café provides
decoration services for certain events such as those who want to celebrate birthdays,
graduations, and others, of course with a minimum purchase according to the applicable
terms and conditions.
The formulation of the problem is: 1. What are the risks faced by MSMEs, 2. What
types of risks arise in MSMEs, 3. What factors cause the emergence of these risks, and
4. How do MSMEs manage these risks.
The objectives and benefits are: 1. Knowing the risks that arise in MSMEs, 2.
Knowing the types of risks in MSMEs, 3. Knowing the factors that cause these risks to
arise, 4. Knowing the losses suffered by MSMEs, 5. Knowing how to manage risks in
MSMEs.
Literature Review
Risk
All activities carried out by individuals or groups will involve risk. Every business
undertaken will be associated with risk. Business risk depends on the take-up received
by the risk taker. In general, the higher the risk, the higher the return.
Risk is generally defined as an unpleasant (harmful, detrimental) action or result.
Risk is a possibility that can produce losses if not managed and anticipated properly
(Rustam, 2017).
Risk is defined as an uncertainty about the circumstances that will occur in the
future where decisions are obtained through current considerations (Fahmi, 2010).
Overall, the definition of risk can be summarized as a condition that arises due to
uncertainty with all kinds of adverse consequences.
Risk Management
Risk management is a series of methods or procedures to identify, measure,
monitor, and control risks arising from a business activity with the aim of obtaining
more effectiveness. This relates to the general definition of risk (Darmawi, 2016). In
other words, in every business or activity, there will be the possibility of goals not being
achieved or decisions taken that are always uncertain. A condition that arises due to
uncertainty and has an unfavorable outcome is called "risk". Adverse effects are related
to the inability to achieve business objectives, namely the right cost, time and quality of
results, while risks are related to future events and reflect the uncertainty of decisions
and choices made.
The main objective of risk management is to ensure consistent enforcement of all
risks and business policies (Wahyudi, 2013).
A common function in risk management is to identify or diagnose risks. Some risks
may need to be avoided, some may need to be managed independently, and others may
need to be insured. The functions of risk management include:
Determine direction by periodically reviewing and approving risk limits in line with
changes in corporate strategy.
Set limits generally on lending coverage, non-credit placements, asset liability
management, trading, and other activities such as derivatives.
Determine audit procedures to ensure the integration of risk measurement, reporting
system controls, and compliance with applicable policies and procedures.
Adopt risk management methods using recording and reporting systems that are
integrated into computerized systems so that the main sources of risk for banking
organizations can be measured and monitored.
In general, risk is divided into several comprehensive categories, including the
following:
Reputational risk: a threat that will affect a person's perception of the good name of
a company.
Financial risk: risks related to finance where there can be potential losses to the
company.
Operational risk: risks stemming from internal and external malfunctions. For
example, system malfunction and human error.
People risk: risks that arise from human resources within a company.
Strategic risk: risk stemming from making inappropriate decisions in response to
changing external conditions.
Stakeholder satisfaction/public preference: a measurement of public and
stakeholder perceptions of a project.
Compliance/legal risk: risks related to the law which may occur due to the
incompatibility between the company's activities and the laws and regulations.
Technology risk: risks arising from the information resources used by a company.
Organizational risk: risk that arises from anything that generates uncertainty in an
organization.
Confidentiality risk: confidentiality which has an obligation to protect the identity
and privacy of the company.
Security risk assessment: identifies the threats that will be faced by the
company. Risk Management Process
According to (Eelliott, 1978), the definition of risk is defined as follows:
1. Chance of loss risk
Risk is the probability of loss. The probability of loss refers to the exposure to loss.
In statistics, probability is used to prove that a level of probability occurs in a given
situation. Some authors reject this concept because it has different levels of risk and
loss. If the probability of loss is 100%, it means that the loss is certain and therefore
risk-free.
2. Possibility of loss risk
The probability of risk here is defined as an event occurring between 0 and 1.
However, this understanding is not suitable for use in quantitative analysis.
3. Uncertainly risk
Uncertainty can be subjective or objective. Subjective uncertainty is an individual's
assessment of a risk situation based on the knowledge and attitudes of those involved.
Whereas objective uncertainty can be described using two definitions of risk as
follows:
a. Dispersion of actual from expected results risk
Statisticians define the risk of actual results deviating from expected results as
how much a value varies from a central position or average point.
b. Probability of any outcome different from the one expected risk
This risk of the possibility that the outcome will be different from what is
expected is not the probability of a single event, but the probability of multiple
outcomes that differ from expectations.
Overall, the conclusion of the definition of risk is a condition that arises due to
uncertainty with all kinds of adverse consequences.
Risk Management Process
In starting a business, risks are everywhere, so risk management helps an
organization manage all the risks that may arise and affect its objectives. Risk
management is basically done by using risk management processes. The risk
management process is a continuous, logical, and systematic process designed to
manage risk. The risk management process is divided into 7, including (COSO.ORG, n
d.):
Objective setting
Objectives must be in place before management can identify potential events that
affect their achievement. Goal setting involves identifying what the organization wants
to achieve in the long term, also known as relevant short-term or operational goals that
enable the achievement of strategic goals.
Event identification
Internal and external events that affect the achievement of objectives must be
identified, distinguishing between risks and opportunities. In identifying risks, there are
several techniques, such as tracing the source of the risk until the undesirable event
occurs. For example, banks are exposed to risks, especially credit risk (the possibility
that borrowers may not be able to repay their debts). For banks that also actively trade
securities, they will face market risk.
Risk assessment
Risk assessment is a systematic process that involves analyzing risks, considering
likelihood and impact to serve as a basis for determining how they should be managed.
The scope of risk assessment is divided into 14, including:
Strategic risk management: risks that occur due to inappropriate strategic
decisions.
Operational risk management: failure of a process or procedure stemming from
a number of issues.
Compliance risk management: the process of reducing losses arising from an
organization's failure to comply with regulations, laws, and so on.
Internal audit risk management: an independent activity that helps the
organization achieve its objectives, and enhances the organization's added value
and operations.
Financial statement risk assessment: the risk of the auditor expressing an
inappropriate opinion when the financial statements are materially misstated.
Fraud risk assessment: a risk management tool that can control if fraud occurs.
Market risk assessment: the process of assessing, measuring, and ensuring that
the risks taken are in line with the desired risk.
Credit risk assessment: measures the level of credit risk lent to creditors
Customer risk assessment: the occurrence of business relationships from the
transactions carried out.
Supply chain risk assessment: The process of identifying, evaluating and
mitigating risks to the integrity and authenticity of products and services in the
supply chain.
Product risk assessment: improving products and meeting applicable legal
requirements.
Security risk assessment: identifies the threats that will be faced by the company.
Information technology risk assessment: identifies threats from the company's
IT system.
Project risk assessment: a process that aims to gain a better understanding of a
project that affects its success.
Risk response
Risk response is the process of determining actions to develop strategic options,
increase opportunities, and reduce threats to project objectives. Management chose 4
risk responses namely:
Tolerate: a risk response that refers to an organization being prepared to handle
losses when making investment decisions.
Treat: a risk response that is more of a way of handling where control
objectives are taken to limit the risk that will be accepted.
Terminate: a risk response to deal with a major impact error caused by a
company.
Transfer: risk response that is done by paying a third party or convention
insurance to take on the risk.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
Control activities
Control Activities are actions to help ensure responses to assessed risks and other
management directives, such as setting standards of behavior in the control
environment, are carried out correctly and in a timely manner.
Information and communication
Relevant information is identified, captured and communicated so that people can
fulfill their responsibilities.
Monitoring
Risk monitoring is a process that tracks and evaluates the level of risk within an
organization. In addition to monitoring the risks themselves, the discipline tracks and
evaluates the effectiveness of risk management strategies.
Risk Register
A risk register is a risk management tool which is a document used to identify
potential failures in a project. The goal of the risk register process is to identify, analyze,
and resolve risks simultaneously before they become a problem. Risk management often
focuses on projects, but in other situations, risk management is also very useful in
launched products and manufacturing.
The step to managing risk is to work strategically to control the potential problems
that are most likely to occur when managing a project. Therefore, it is imperative to
have a risk analysis mechanism in place to gather potential risks and then map out a path
to mitigate the risk and get the project back on track, should the risk become a reality.
Risk registers may vary depending on the organization and project. However, most
risk register templates have these commonly used elements:
Risk identification ID: Name or ID number to identify the risk.
Description of the risk: A brief description of the risk.
Risk breakdown structure: A risk breakdown structure is a chart that makes it
possible to identify all project risks and categorize them.
Risk categories: There are many categories of risks that can affect a project such as
schedule, budget, and technical and external risks.
Risk analysis: The purpose of risk analysis is to determine the probability and
impact of risks. It can be done by qualitative risk analysis or quantitative risk
analysis.
Risk probability: by estimating the likelihood of each risk and assigning a
qualitative or quantitative value.
Risk prioritization: Risk prioritization is determined by assigning a risk score to
each risk, which is obtained by multiplying the risk impact and probability values.
If qualitative measures are used, the risk with the highest impact and highest
probability should be prioritized.
Risk response: Every risk requires a risk response to mitigate its effect on a project.
The risk response is also documented in the risk response plan.
Risk Ownership: Each risk needs to be assigned to a team member who is the risk
owner. The risk owner is responsible for deploying the appropriate response and
overseeing it.
Methodology
Sampling Method
Purposive sampling is the type of method used in the process of preparing this
report. The Purposive Sampling technique is a sampling technique in qualitative
research, by initially determining criteria regarding consumers, including consumer
links to products. By using this Purposive Sampling method, it can help the author to
describe and analyze risks, especially in the risk process of UMKM Board Games Café
in a narrative manner so that it will be easier for readers to understand (Sitoresmi, 2021).
Operational Definition of Risk Management Variables
The definition of variables according to Hatch and Farhady is objects or attributes
that have variations between one another. In this study, identifying variables is used to
help and also determine data collection tools and will use data analysis techniques.
Meanwhile, the operational definition of research variables according to Sugiyono is a
trait, an attribute and a value of an object or activity that has certain variations which
have been determined by a researcher to study and then draw conclusions (Sugiyono,
2019).
Data Analysis Method
In preparing this report, the author analyzes the data that has been obtained. The
data that has been collected by the author through secondary data will then be carried
out using a qualitative analysis method. In general, qualitative data analysis methods are
defined as methods that depend on the ability to calculate data accurately. This method
also requires an ability to interpret data in a complex manner. Some examples of
qualitative analysis methods are descriptive, factor and regression analysis. In this
quantitative data analysis method, it is carried out with the aim of answering the
questions used in analyzing Board Games Café UMKM. The purpose of using this
method of analyzing the data that has been obtained is, then it will be interpreted and the
author can draw conclusions in the form of discussion results which will be explained in
the next chapter.
Analysis
Interpretation Result on Board Games Café
The following are the results of the risk management interpretation of Board Games
Café:
1. Risk Identification:
the process to find, recognize, identify what risks are likely to occur in the
company's operations so that the company can find risks that hinder the company in
achieving its goals. From the results of our interviews and identification, the risk
that occurs in MSMEs is the Covid-19 pandemic which causes MSMEs not to
operate as they should. Second, MSMEs do not experience regular consumers or
customers. This can be because customers who come want to try what is "typical"
of Board Games, namely trying games from the café. Third, MSMEs experience a
decrease in turnover because the capital obtained is used to buy kitchen tools and
materials.
2. Risk Assessment:
the process of assessing risk by comparing the assessed risk with the predetermined
risk level or criteria. From the results of our analysis, the level of risk that occurs in
MSMEs due to the Covid-19 pandemic is a type of risk with a level of possibility of
being rare and causing very serious consequences because the pandemic has only
occurred once so there is a minimum possibility of the same pandemic reappearing
in the future and the Covid-19 pandemic is related to life and can even cause death
so it is a high risk. Second, MSMEs do not experience consumers or regular
customers. This is a type of risk with a medium probability level and has serious
consequences because if customers only come to play, MSMEs may experience a
significant decrease in income. Games provided in MSMEs can be purchased by
customers at malls or e-commerce so that this can minimize the possibility of
customers coming to the café just to play games even though this café provides a
unique concept. Third, MSMEs experience a decrease in turnover because the
capital obtained is used to buy kitchen tools and ingredients. This is a type of risk
with a level of possibility of occurring rarely with negligible impact, however, a
decrease in turnover due to the purchase of materials and tools is a natural thing in a
café.
3. Risk Treatment:
the process of making decisions regarding specific actions to lower the level of risk
with the aim of reducing company losses. The first one is related to Covid-19. What
MSMEs can do is to implement distance between each other, limit incoming
customers, and implement health protocols. After all, Covid-19 is a virus that can
eliminate human life. If the café is allowed to close, then the turnover from the café
will be completely absent. However, if the café chooses to accept take away, Gojek,
and Grab orders, it can be said that the café is still operating so that it can get
turnover. Second, MSMEs do not get regular customers. This can be circumvented
by the café making more menus by including food or drinks from various countries
(so it does not provide Indonesian specialties only). In addition, MSMEs can
provide food and drinks according to the latest trends. Third, MSMEs experience a
decrease in turnover because they have to buy the necessary materials and tools. For
this, the cafe does not need to worry too much because this is low risk and is a
natural thing. The action that must be taken is to reduce buying materials in large
quantities because the cafe does not have regular customers so that the materials
will be wasted and suffer losses. For tools, what can be done is to maintain the use
of these tools properly and correctly so that the tools have a decent storage time.
However, if the tool cannot be used before the proper time period, it is better to
replace it for hygiene and health reasons.
4. Risk Reporting:
the process of identifying risks that occur or risks that later occur so that they have
an impact on the business in achieving goals. The risks that occur in MSMEs
certainly have an impact on the company so that it can interfere with the company
in achieving its goals. Because this risk can interfere with the company, the
company should implement ways to minimize the risk or maybe even eliminate the
risk. Risks can be eliminated at the first risk because Covid-19 does not always
exist. However, the second and third risks can only be minimized, not eliminated
because the MSME customers must be different. There is no problem with different
customers as long as we can maintain the amount of turnover and for the third,
materials and tools will definitely be used in MSME cafes.
5. Risk Monitoring:
the process of evaluating the effectiveness of risk management. Risks that occur in
MSMEs have been evaluated by MSMEs and solutions have been implemented
accordingly. So far, the solutions written are quite effective, but it does not rule out
the possibility that other risks will arise. An example of another risk that might
occur is that MSMEs experience a lack of space for their customers, because
customers sit too long to do assignments, play together, or even just chat together so
that the café cannot meet the seating needs of customers who multiply at certain
times such as exam periods, family events, birthday events, and the like.
Risk Register
In building a business, there must be risks that will be faced by a business venture.
Therefore, before building a business, business owners need to first outline the risks that
may be experienced by the business. Through the MSMEs that our group has chosen,
namely Board Games Cafe, of course it also experiences several risks in operations that
occur or may occur in the Boards Games Cafe MSME. Some of the risk descriptions
experienced by our MSMEs are as follows;
The risk posed by external factors such as Covid-19 that has hit Indonesia is no
exception to Batam, Covid-19 which occurred in early 2020-2022. The pandemic
causes individuals to keep their distance from each other to prevent the virus from
spreading further. This causes business closures and is also detrimental to business
openers. This also affects the performance system of Boards Game Cafe because
the café needs to be closed and when it opens, there are rarely consumers who come
to visit due to the pandemic. Fortunately, in 2022 the pandemic began to subside
and business ventures could reopen and Boards Game Cafe could make a profit
again.
Losses caused by decreased turnover and damage to kitchen items, this risk is a risk
that cannot be avoided because goods certainly have a lifespan so that the owner of
Boards Game cannot possibly continue to let employees use tools that have been
damaged and endanger Boards Game employees. The only solution that can be done
is to replace the damaged tools with new tools.
The risk that cannot be avoided by Boards Game is also the taste of consumers,
most consumers are not settled or subscribed. In the sense that MSMEs cannot get
definite profits because consumers are constantly changing or not returning. The
solution provided is to promote through Boards Game's personal social media to
attract consumers back. For example, presenting new games or developing and
marketing the latest products that can attract consumers to become regular
consumers at Boards Game.
From the risks that our group has described, the risks above are included in
Organizational Risk and Operational Risk because they occur due to uncertainty in the
MSME operational system and the occurrence of risks caused by external factors that
cannot be predicted properly by the MSME Boards Game so that the risks as previously
described occur.
Impact of Risk Management on Board Games Café
UMKM Board Games Cafe is a cafe with one of the unique concepts in Batam.
With its uniqueness, a business cannot be separated from the risks that may occur.
Hence the need for risk management. Risk Management is an analysis process carried
out to avoid losses and increase profits. As our group has explained in the Risk Register,
there are certainly impacts that affect the development of our MSMEs. After the
existence of Risk Management, Board Games Cafe has had several positive impacts,
such as increased turnover, involvement of all employees in anticipating risks that may
occur, and solutions that can be offered if challenges occur. From some of the questions
we asked verbally to friends of one university, namely Batam International University, it
was found that Board Games Cafe is a cozy cafe and seems fun with a dim light view
that is enough to calm anyone who is in the cafe. In addition, the cafe is equipped with
facilities such as brain-teasing and fun games such as monopoly, puzzles, mahjong,
riddles, and others. Other facilities include air-conditioning and friendly, courteous and
pet-friendly service.
The Risk Management process is divided into several, namely;
Objective Setting
The desired goal of Board Games MSMEs is that consumers can enjoy their time by
relaxing for a while at Board Games. UMKM also hopes that consumers can take a
minute to play and refresh their minds from reality for a moment.
Event Identification
There is a need for identification from MSMEs to distinguish which are risks and
which are opportunities. In the risk management process, there are internal and external
events that affect the running of an MSME. One of them is the Covid-19 pandemic
which cannot be avoided. Then there is the risk of kitchen tools that cannot survive due
to the life of the tool which is considered an internal risk that needs to be borne by every
business entity, especially our MSMEs. Then there is consumer risk related to consumer
tastes themselves. Taste itself is an objective thing and certainly cannot be forced.
Therefore, MSMEs can only keep trying to promote Boards Game as best as possible
through social media and continue to be consistent in the current taste.
Risk Assessment
In running an MSME, of course there are several risk assessments that can be done.
For our MSMEs, the most common problems are operational and customer. This is
influenced by ideas that are issued that do not occur properly and there is an element
from consumers where consumers will make choices that cannot be predicted and the
possibility of complaints from consumers who are not satisfied with our UMKM.
Risk Response
The response given by our MSMEs regarding the risks that may or have occurred is
treat. Board Games owners expect risks to be minimized as much as possible and can be
anticipated in other ways. For example, replacing all tools that have been damaged so
that no bigger problems occur.
Control Activities
This is done by the owner of Boards Game by always monitoring Boards Game
employees and collecting consumer opinions as a better business consideration in the
future in order to provide the best.
Information and Communication
Providing information is easiest nowadays, namely delivering information to
consumers via social media. Technology also makes things easier in terms of checking
stock and providing information to employees.
Monitoring
In our MSMEs, it is usually the owner who will go directly and analyze the risks
that may occur and provide the best anticipation. The owner also sometimes asks for
opinions from employees who work at Board Games Cafe for consideration.
Summary
Board Games Café is one of the Micro, Small and Medium Enterprises (MSMEs)
engaged in the culinary field. This Board Games Café is a café offering a variety of
varied foods and drinks that can be selected according to consumer tastes, and has a
large variety of games that can be played when visiting the Board Games Café. The
results of risk management interpretation of the Board Games Café are risk
identification, risk assessment, risk treatment, risk reporting, risk monitoring, and risk
register. Based on the analysis of the data above, it can be concluded that the risks faced
by the Board Game Café are risks caused by external factors such as Covid-19 which
has hit Indonesia, including Batam, Covid-19 which occurred in early 2020-2022.
Losses in turnover caused by Covid-19 and damage to equipment caused by long usage,
and the risk of not having regular customers. The above risks are included in
Organizational Risk and Operational Risk. The existence of this risk management can
have several positive impacts, such as increasing turnover, the involvement of all
employees in anticipating risks that might occur, solutions that can be offered if
challenges occur, and good facilities can also reduce the risk of losing customers. The
business risk at Board Games Café will be heavy if the café does not have good risk
management.
