Navigating Risks with ISO 31000 for A Sustainable Future: A Strategic Approach in The Indonesia Textile Industry
The dynamic changes across various industries are creating uncertainty, potentially leading to a state of risk. All industries are required to formulate mitigation actions for downside risks that have negative effects and leverage on upside risks, those with positive impacts. Despite various mitigat...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2025-03-01
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| Series: | Management Systems in Production Engineering |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/mspe-2025-0009 |
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| Summary: | The dynamic changes across various industries are creating uncertainty, potentially leading to a state of risk. All industries are required to formulate mitigation actions for downside risks that have negative effects and leverage on upside risks, those with positive impacts. Despite various mitigation actions, only a few industries are capable of implementing risk management to address the dynamic changes. The refore, this qualitative research aimed to investigate the effectiveness of risk management guided by ISO 31000:2018 in navigating risks as a strategic approach for the industry to achieve a sustainable future. The investigation focused on the application of risk management in the textile manufacturing industry in Indonesia. The initial stages commenced with defining risk management scope, context, and criteria, followed by risk assessment consisting of identification, analysis, and evaluation, as well as formulating risk treatment. Heads of production, finance, and purchasing departments were selected as key informants through judgment sampling, where the results of semi-structured interviews served as primary data. Furthermore, operational, financial, strategic, technological, and informational risks were identified in the industry. The results showed that among the 109 downside and 20 upside risks, 10 were categorized as high-level and prioritized for handling. A total of 52 actions were determined as a treatment to navigate the high-level risks. The results showed that the ISO 31000:2018 guideline effectively addressed industry risk management needs, offering potential solutions to overcome the dynamic changes. |
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| ISSN: | 2450-5781 |