The Role of Risk Mitigation Strategies in MSME Sustainability Planning

Peran Strategi Mitigasi Risiko dalam Perencanaan Keberlanjutan UMKM

Abstract

This article aims to understand the role of risk mitigation strategies in supporting the sustainability planning of Micro,Small, and Medium Enterprises (MSMEs). This type of study is a library research with a qualitative descriptive approach. The data collection technique in this article uses literature studies
through various sources, such as books, scientific journals, and the ISO 31000:2018 risk management standard. Data analysis was carried out by describing, comparing, and classifying information related to the implementation of risk mitigation strategies in MSMEs, both from a theoretical and practical
perspective. The results of the discussion indicate that risk mitigation strategies can be implemented through several approaches, including risk avoidance, risk reduction, risk transfer, and risk acceptance. The implementation of these strategies helps MSMEs anticipate potential losses, increase competitiveness, and maintain business sustainability amidst uncertain business environments. Based on the results of the study, it is concluded that risk mitigation strategies have an important role in MSME sustainability planning because they can strengthen business resilience, support appropriate
decision-making, and increase the chances of long-term success.