Supply chain risk mitigation

Oct 13, 2025 by recoveryshake.com 64 views

Introduction

Construction projects often face various risks that can affect the implementation and final results. Every activity in this project has a different level of risk, depending on the type of work done. Supply chain risk mitigation is a crucial aspect of construction projects, as it can significantly impact the project's schedule, budget, and overall success. This study aims to analyze and reduce the risks that arise during the development process of the Cendana Cluster Housing Project located at Simpang Selayang, Medan Tuntung, Medan City, North Sumatra.

Background of the Study

The Cendana Cluster Housing Project was carried out by PT. Alva Graha Sejahtera, known as the business "De Property". The main problem faced in the development of this project is the delay in the work process compared to the schedule agreed upon in the contract. This study focuses on the House of Risk (HOR) method, which is a systematic approach to risk management. The HOR method is a framework that helps identify, assess, and mitigate risks in a construction project.

Research Purposes

This study aims to analyze and reduce the risks that arise during the development process by minimizing the emergence of risk events and risk agents. In addition, this research also wants to provide efforts to improve risk through the House of Risk (HOR) method in phases I and phase II. The research purposes are:

To identify the risks that arise during the development process of the Cendana Cluster Housing Project
To analyze the risks using the House of Risk (HOR) method
To provide recommendations for risk mitigation and management

Methodology

The research methodology used in this study is a qualitative approach, which involves the use of the House of Risk (HOR) method to identify, assess, and mitigate risks. The HOR method is a systematic approach to risk management that involves the following steps:

Risk identification: Identify the risks that arise during the development process of the project
Risk assessment: Assess the risks using a risk assessment matrix
Risk mitigation: Develop and implement risk mitigation measures to reduce the likelihood and impact of the risks

Risk Identification

Through identification, seven risk categories were found that were relevant to the development of Cendana Cluster Housing. These categories include:

Financial Risk: relating to the budget and the allocation of funds that are not appropriate
Security Risk: related to project safety from external disturbances
Material risk: arises from the procurement of building materials that are late or not quality
Design risk: comes from errors in design that can affect construction
Management Risk: related to the management of human resources and inefficient processes
Force Majeure Risk: including unpredictable natural disasters
HR risk: related to the lack of workers' skills or their absence

Of the seven risk categories, 16 risk events are identified and 25 risk agents who have the potential to affect the smooth running of the project.

The House of Risk Method Results

Through the application of the House of Risk method, phase I produces 12 priority risk agents that need special attention. Meanwhile, phase II of the same method produces 12 risk mitigation measures compiled based on ETD (expected time delay). This mitigation action is easier and effective to be applied in dealing with identified risks.

Conclusion and Recommendations

Risk mitigation analysis using the House of Risk method on the Cendana cluster housing construction project shows the importance of systematic risk identification and management. By understanding and overcoming risks, the project is expected to run according to the schedule and budget that has been set. Therefore, the implementation of appropriate and planned mitigation actions is a crucial step to improve the efficiency and success of future construction projects.

Through this analytical and systematic approach, it is expected that other construction projects can also utilize similar methods to manage risk effectively, thereby reducing the possibility of problems that can harm all parties involved.

Limitations of the Study

This study has several limitations, including:

The study only focuses on the Cendana Cluster Housing Project and may not be applicable to other construction projects
The study uses a qualitative approach, which may not provide a comprehensive understanding of the risks involved
The study only uses the House of Risk method, which may not be the only method for risk management

Future Research Directions

Future research directions include:

Conducting a comprehensive study on the risks involved in construction projects
Developing a more comprehensive risk management framework that incorporates multiple methods
Conducting a case study on other construction projects to validate the findings of this study

References

[1] House of Risk (HOR) Method (2022)
[2] Risk Management in Construction Projects (2020)
[3] Supply Chain Risk Management (2019)

Appendices

Appendix A: Risk Identification Matrix
Appendix B: Risk Assessment Matrix
Appendix C: Risk Mitigation Measures

Note: The references and appendices are not included in this response as they are not provided in the original content.
Frequently Asked Questions (FAQs) on Supply Chain Risk Mitigation on Cendana Cluster Housing Construction Project Using the House of Risk (HOR) Method

Q: What is the House of Risk (HOR) method?

A: The House of Risk (HOR) method is a systematic approach to risk management that involves identifying, assessing, and mitigating risks in a construction project. It is a framework that helps to identify, assess, and mitigate risks in a construction project.

Q: What are the benefits of using the House of Risk (HOR) method?

A: The benefits of using the House of Risk (HOR) method include:

Identifying and mitigating risks early in the project
Improving the efficiency and success of the project
Reducing the likelihood and impact of risks
Improving the overall quality of the project

Q: What are the limitations of the House of Risk (HOR) method?

A: The limitations of the House of Risk (HOR) method include:

It may not be applicable to all types of construction projects
It may not be comprehensive in identifying all risks
It may require significant resources and time to implement

Q: What are the key steps in the House of Risk (HOR) method?

A: The key steps in the House of Risk (HOR) method include:

Risk identification: Identifying the risks that arise during the development process of the project
Risk assessment: Assessing the risks using a risk assessment matrix
Risk mitigation: Developing and implementing risk mitigation measures to reduce the likelihood and impact of the risks

Q: What are the types of risks that can be identified using the House of Risk (HOR) method?

A: The types of risks that can be identified using the House of Risk (HOR) method include:

Financial risk: relating to the budget and the allocation of funds that are not appropriate
Security risk: related to project safety from external disturbances
Material risk: arises from the procurement of building materials that are late or not quality
Design risk: comes from errors in design that can affect construction
Management risk: related to the management of human resources and inefficient processes
Force Majeure risk: including unpredictable natural disasters
HR risk: related to the lack of workers' skills or their absence

Q: How can the House of Risk (HOR) method be applied in real-world construction projects?

A: The House of Risk (HOR) method can be applied in real-world construction projects by:

Identifying the risks that arise during the development process of the project
Assessing the risks using a risk assessment matrix
Developing and implementing risk mitigation measures to reduce the likelihood and impact of the risks
Monitoring and reviewing the risks throughout the project

Q: What are the future research directions for the House of Risk (HOR) method?

A: The future research directions for the House of Risk (HOR) method include:

Conducting a comprehensive study on the risks involved in construction projects
Developing a more comprehensive risk management framework that incorporates multiple methods
Conducting a case study on other construction projects to validate the findings of this study

Q: What are the implications of the House of Risk (HOR) method for construction project managers?

A: The implications of the House of Risk (HOR) method for construction project managers include:

Identifying and mitigating risks early in the project
Improving the efficiency and success of the project
Reducing the likelihood and impact of risks
Improving the overall quality of the project

Q: What are the implications of the House of Risk (HOR) method for stakeholders?

A: The implications of the House of Risk (HOR) method for stakeholders include:

Improving the overall quality of the project
Reducing the likelihood and impact of risks
Improving the efficiency and success of the project
Enhancing the reputation of the project manager and the organization

Note: The questions and answers are based on the content provided and may not be comprehensive or exhaustive.