Risk mitigation analysis of delays in the procurement of personal protective equipment using the house of risk method

PT XYZ is a shipping company that provides sea transportation services, including ship rental and ship management. In its business operations, PT XYZ requires Personal Protective Equipment (PPE) procurement, which faces challenges due to high urgency and frequently changing order lead times, leading to delays in PPE delivery by suppliers. This study aims to apply the House of Risk (HOR) technique to analyze risk agents (risk causes) related to procurement risks and to identify and measure the impact of these risks on the procurement of PPE. The study identified 20 risk events and 20 risk agents. In HOR Phase 1, risk agents were analyzed using the Aggregate Risk Potential (ARP) approach, with a Pareto diagram applying the 80:20 principle to prioritize the most dominant risk agents. In HOR Phase 2, six handling strategies were developed, and the 60:40 Pareto principle was used to select the top four primary mitigation strategies based on their effectiveness. The results indicate three dominant risk agents among the 20 identified, along with four prioritized mitigation strategies out of the six developed strategies. These strategies are expected to improve the timeliness and efficiency of PPE procurement in PT XYZ’s operations.