Good risk management will reduce the impact and risk of an event. In this study discussed the risks that may arise in the wooden toy industry supply chain and how to manage these risks. The calculation divided into three phases; there are risk mapping, risk assessment, and risk management. House of Risk (HOR) is used in calculating potential risks and Analytical Network Process (ANP) is used to choose the best strategy for supply chain risk management. Followed by HOR calculation, risk that has the greatest value and selected as potential risk is the risk of price/cost fluctuations with an ARP value of 432. The strategy of this risk is grouped based on 2 causes, namely raw material price fluctuations and poor management. With ANP calculations, the strategy for raw material price fluctuations are understanding and determining the quantity of material used (28.14%) and combining woods with various commodities (23.23%). Then the alternative for poor management are doing strategic financial accounting (54.48%) and doing financial planning (33.07%).

Risk is a factor that has a potential to occur in every part of an industry, including its supply chain. Every industry must consider and manage its supply chain risks in order to minimize losses while improving performance. In this study, a supply chain risk management (SCRM) approach was conducted in the supply chain of wooden toy industry as a way to minimize the impact of risk. In this case, SCRM method is done by identifying risks, assessing risks using the failure mode effect criticality analysis (FMECA) method to determine the risk priorities that must be mitigated, and establish strategies to mitigate the risk with analytical network process (ANP) method. Thus, the risk priority in the wooden toy industry’s supply chain is the cost/price risk with the highest WRPN value of 33,379. In order to mitigate the cost/price risk, conducting strategic accounting practices and financial planning are recommended to be considered as its strategies.

The supply chain is the relationship between material flows or services, money flow and information ranging from suppliers, producers, distributors, warehouses, retailers to customers. The smooth flow of material in the supply chain affected in the fulfillment of customer needs. If the problem occurs, it caused losses and risks. To minimize risks, it can be handled with Supply Chain Risk Management. This research was conducted in the supply chain in Wooden Toys Industries by identifying risks using the Fuzzy Reasoning method to calculate the amount of opportunity and impact that would arise if the risk occurred. To reduce the opportunity and impact of risk, a mitigation strategy is needed to consider and can be done using the Analytical Network Process method. Followed the results, the competitor’s moves have a large chance and risk. Thus, risk mitigation can be proposed is necessary to conduct market observations and identify competitors at (31.3%).