Risk Management in The Halal Industry: A Comprehensive Analysis

Abstract

This paper examines the critical role of risk management in the rapidly expanding global Halal industry. It explores the evolution from traditional product-focused approaches to comprehensive, process-oriented risk management strategies in ensuring Halal integrity. The study analyzes the "Halal built-in, not tested for" concept and its integration into certification processes, highlighting the shift towards proactive risk mitigation. It investigates the implementation of Halal Assurance Systems (HAS) and their risk management components, including decision trees and material analysis worksheets. The research addresses the impact of global crises, exemplified by the COVID-19 pandemic, on Halal supply chains, emphasizing the need for robust, adaptable risk management frameworks. The paper proposes the adoption of Enterprise Risk Management (ERM) principles in national Halal management plans and advocates for increased strategic collaboration among industry stakeholders. Furthermore, it discusses the integration of risk-based thinking into Halal quality management standards. This comprehensive analysis contributes to the growing body of literature on Halal industry management by providing insights into the development of resilient, sustainable Halal value chains in an increasingly complex global market environment.