Risk Management Towards the Sustainability of the SMEs Business in the post COVID-19 Era

This research aims to analyze the vulnerability level of SMEs on the COVID-19 threats, technical efficiency of SMEs, and successful key variables of SMEs in the post covid-19 era. This study employed 3 analyses: business vulnerability, technical efficiency, and structural analysis. Vulnerability analysis is obtained from the index of vulnerability to the threat of COVID-19 compiled from all values of each aspect indicator of SMEs vulnerability. These values consist of exposure, sensitivity, and adaptive capacity. Technical efficiency analysis adopted non-parametric approach which was processed using DEAP. Structural analysis was used in determining key variables in SMEs business. The results of the study explain that SMEs are categorized into medium vulnerability, where sensitivity is the highest influence aspect as a determinant of the vulnerability level. The decline in sales, which was then resulted in bankruptcy of SMEs was due to the fact that the majority (80.28%) of SMEs had not efficiently operated, either in resource allocation or output attainment. The study results clarify 5 of the 20 key variables used to determine the main variables having a high influence in supporting business performance in the post covid-19 era, e.g., achievement-oriented, effective marketing, optimism, market understanding, and risk management.