Risk Factors Analysis in Halal Supply Chain Management System

Abstract

Implementing a Halal supply chain (HSC) management system has been dynamically deployed along the supply chain process in line with the growth of the Muslim community. As the market has become more competitive, businesses have realised the need to obtain Halal certification and incorporate it into their operations as the demand for Halal compliance has increased. Fraud during the implementation and execution process in the HSC management system also increases. This research aimed to prioritise the six risk factors with 24 risk types in the HSC management system for the HSC industry to comprehend, observe, and prepare for risk mitigation. The research methodology applied in this study is qualitative research. It consists of a literature review followed by interviews using qualitative risk analysis with experts to determine the HSC risk factors rating exposure using closed-ended interviews and then securing the experts’ opinions on the risk factors. The risk factors analysis in the HSC management system results significantly assist the HSC industry in implementing risk mitigation for their business operations to ensure HSC compliance and business sustainability. The findings concluded are significant for study purposes and for enterprises for references or basic guidelines in identifying the HSC risk and preparing for the risk mitigation action.