ASSESSING AND MANAGING RISKS IN SPA AND WELLNESS MASSAGE BUSINESS IN THE COVID-19 SITUATION USING A SUPPLY CHAIN RISK MANAGEMENT (SCRM)

Abstract

The spa and wellness massage business is a constantly growing business to meet the growing number of tourists. However, the spread of Coronavirus disease (COVID-19) impacts the tourism and spa, and massage sectors. This research aims to assess the risks of the spa and wellness massage business using the principles of risk management in the supply chain. First, identifying risk characteristics. Second, measuring risk by setting severity thresholds. Third, risk assessment by determining the probability or likelihood of risk. Next, risk Mitigation cost assessment using a Hazard Totem Pole (HTP). After that, the importance of risk is sorted by three main factors according to HTP. Finally, the risk response plan is to control and monitor risks by formulating strategies to solve the most critical and unacceptable risks. The assessment is conducted by the business executive and three experts. The results showed that there are 74 risks in the spa and massage business supply chain, where two risks are unacceptable, namely a decrease in working capital and the number of customers. Recommendations include adjusting the service model, applying for the SHA Plus program if the government opens the travel bubble project, and temporary cessation of business to reduce the burden of expenses. This research is useful for entrepreneurs in the health spa and massage business who want to manage the risks in both normal situations and the spread of COVID-19.