RISK MANAGEMENT STRATEGY TO REDUCE THE POTENTIAL FOR BUSINESS DISPUTES IN MSMES IN MEDAN CITY

Abstract

This study examines the implementation of effective risk management strategies to minimize the potential for business disputes in Micro, Small, and Medium Enterprises in Medan City. This study analyzes various challenges faced by MSMEs, including limited capital, product quality issues, and lack of innovation and government support, which often trigger disputes. The methods used include qualitative descriptive analysis to identify the root of the problem and the formulation of strategic recommendations that are applicable to MSME actors in the region. A comprehensive literature review is the main foundation in identifying common dispute patterns and best risk management practices that have proven effective in the context of similar MSMEs. The implementation of this strategy is expected to strengthen the position of MSMEs in facing market dynamics and minimize losses due to unexpected business conflicts. This research is expected to be able to make a significant contribution to the development of an adaptive and proactive risk management framework, especially in an effort to prevent the escalation of disputes into litigation that is detrimental to MSME operations. Focusing on risk mitigation strategies, such as product diversification and quality improvement, is also crucial to minimize potential disputes in the future.