SUPPLY CHAIN RISK MANAGEMENT OF HYBRID CORN USING HOUSE OF RISK METHOD CASE STUDY: PT CITRA NUSANTARA MANDIRI, SOLOK

Agriculture sector has become one of economic power in Indonesia beside industries and service sector. The Indonesian Government usually focuses on the food commodities that have a strategic role, one of them is a corn. Indonesia's corn demand continues to increase every year, it encourage the development of cultivation corn, known as hybrid corn. West Sumatera is one of corn producers province in Indonesia by harvested area reached 89,560 hectares and corn production in 2015 with a total of 618,833 tons. One of companies that operate to fulfill the society need of corn is PT Citra Nusantara Mandiri (PT CNM). PT CNM has partnered with more than 1,500 farmers as the suppliers of raw corn, worked with CV Usaha Tani as a supplier of fertilizer, and collaborated with PT Pertani as a distributor. PT Pertani distributes the hybrid corn to 7 retailers located around Bukittinggi and Batusangkar. The big supply chain network needs a good risk management in order to achieve a higher profit for the entire actor in the supply chain stage. Each actor needs to arrange an appropriate strategy to reduce or eliminate the risks. This study uses the House of Risk (HOR) approach to determine the possible risks and the preventive actions to reduce the risks, divided into First HOR Model and Second HOR Model. First HOR Model, consist of mapping activities, risk identification, and risk analysis. In this stage is used Questionnaire A to obtain the assessment of Severity, Occurrences, and Aggregate Risk Potential (ARP) to determine the risk ranking. Second HOR Model consists of risk evaluation, and risks response. In this stage is used Questionnaire B to determine the Preventive Action that need to be implemented by calculating the total of difficulty and effectiveness level (ETDk). Based on the First HOR Model, identified a total of 38 risk events and 36 risk agents in the supply chain of hybrid corn. According to ARP value, selected a total of 22 risks agents, with a total of 7 risk agents on farmers, on manufacturer stage (PT Citra Nusantara Mandiri) with a total of 6 risk agents, retailers stage with a total of 4 risk agents, distributor stage (PT Pertani) with a total of 4 risk agents, and 1 risk agents on consumer stage. The Preventive Action is designed in the Second HOR Model, with the results of 26 Preventive Actions (PA). According to total effectiveness and difficulty level (ETDk), 13 preventive actions suggested to be implemented for each actor in the supply chain of hybrid corn. Keywords: Supply Chain, Risk Management, Supply Chain Risk Management, Hybrid Corn, House of Risk (HOR