Risk Management: How to Avoid the Loss Potential Risk on Production of Bali Cattle Business

Abstract

The agricultural sector is the same as other fields, which has the potential to trigger risks, such as risks in the production sector, risks in the use of technology, risks in marketing, policy risks, and risks in the work security and safety system. This study aims to explore the potential risks that can cause business losses and determine the appropriate steps in production risk management on Bali cattle farms (local cattle). This study used a mixed method approach, on 100 beef cattle breeders, using a purposive sampling technique. Analysis of business risk management in Bali cattle production using the House of Risk matrix 1 and 2. The results identified 20 risk events, while 45 risk agents were found in the Bali cattle business activities. Priority risks are determined based on the highest ARP value, where in the study found 11 priority risks, and mitigation actions obtained as many as 10 preventive actions. The conclusion of the study shows that there are 4 stages in building a risk management model in the field of Bali cattle production, namely the risk identification stage, the risk analysis stage, the mitigation action determination stage, and the production risk management results reporting stage. Where the four core activities in risk management in Bali cattle production synergize with each other to form a strong unit, which can be used as a guideline for stakeholders in the beef cattle sector.