QUALITATIVE ANALYSIS OF RISK MANAGEMENT IN SUPPORTING THE CONTINUITY OF PARTNERSHIPS IN FACING LOSSES

Abstract

Partnership-based enterprises increasingly face dynamic challenges driven by global economic fluctuations, technological advancements, and intense competition. Small and medium-sized businesses, although possessing strong growth prospects, remain highly vulnerable to operational disruptions and production failures. Without a structured risk management framework, these vulnerabilities can escalate into declining product quality, financial instability, and an inability to meet market demand conditions that may jeopardize the sustainability of the partnership. Risk management offers a strategic foundation for identifying, analyzing, evaluating, and mitigating risks that emerge within business processes. International standards such as ISO 31000 provide systematic guidelines to reduce uncertainty, while analytical tools like Failure Mode and Effect Analysis (FMEA) and DFMEA help quantify risk levels through Severity, Occurrence, and Detection indicators, enabling organizations to prioritize corrective actions effectively. Previous studies underscore the vital role of risk management in supporting the continuity of SMEs. Muthmainnah et al. (2023) found 38 failure modes in a fashion-sector SME, with a highest Risk Priority Number of 162, signaling an urgent need for preventive measures. Similarly, Rodiyah, Sulistiyowati, and Astutik (2023) developed a DFMEA-based model emphasizing risk identification, analysis, evaluation, and mitigation, demonstrating its effectiveness in reducing losses and strengthening competitiveness. Grounded in these findings, this study aims to qualitatively examine how risk management practices are implemented within business partnerships and how these strategies contribute to sustainability amid potential losses. The research is expected to enrich theoretical discourse on risk management while offering practical guidance to help partnerships enhance resilience and long-term performance.