scholarly journals Operational Risk Assessment and Management in Small and Medium-sized Enterprises

2015 ◽  
Vol 16 (2) ◽  
pp. 140-148 ◽  
Author(s):  
Viktorija Stasytytė ◽  
Loreta Aleksienė
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Operational Risk ◽  
Business Environment ◽  
Enterprise Risk ◽  
Uncertain Future ◽  
Medium Enterprises ◽  
Risk Assessment And Management

Modern organizations have raised a need to actively and quickly react to the changes in external business environment, as well as in internal processes considering not only the present situation, but also evaluating possible changes and forecasting the future. Enterprise risk assessment and management, which is strongly related with foreseeing the uncertain future, becomes topical not only scientifically, but also practically seeking to reveal new and unique solutions. Operational risk management in small and medium enterprises, creating the largest part of value added in the whole European Union, demands a separate attention and coordinated decisions and means. The objective of the paper – to analyse the process of enterprise risk management in small and medium-sized enterprises, as well as to propose adequate risk management solutions for these companies. After performing a research, it was found out that small and medium enterprises more than big organizations require a risk management strategy and methodology, need to distinguish activity objectives and events influencing them, and they can efficiently apply a risk portfolio method to manage risk. In small and medium enterprises it is recommended to incorporate a risk management system based on COSO ERM model that can be modified depending on company needs and possibilities, turning it into less formal and structured and easily applicable.

scholarly journals A proposed operational risk management framework for small and medium enterprises

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Micheline J. Naude ◽  
Nigel Chiweshe
Keyword(s):  
Risk Management ◽  
Small And Medium Enterprises ◽  
Relevant Literature ◽  
Management Strategies ◽  
Operational Risk ◽  
Management Framework ◽  
Operational Risk Management ◽  
Operational Risks ◽  
Risk Management Framework ◽  
Medium Enterprises

Background: The gap between small and medium-sized enterprises (SMEs) and large businesses that perform risk assessment is significant. SMEs continuously face many operational risks and uncertainties in their daily operations, and these risks threaten to reduce productivity, increase costs and reduce profits.Aim: The purpose of this article was to develop an operational risk management framework that SMEs can use to identify and analyse risks in their operations and take corrective actions to mitigate these risks.Setting: Small and medium-sized enterprises in South Africa do not view risk management as a key component of organisational success, despite evidence that businesses that adopt risk management strategies are more likely to survive and grow.Methods: The article is exploratory in nature, and a conceptual analysis approach was used to formulate the framework. This study reviewed relevant literature sources on risk published between 2002 and 2017.Results: The four process steps of risk management were used as a reference point and form the foundation for the operational risk management framework. The categories of operational; marketing; technical and financial risks were identified from a review of available literature on risk management.Conclusion: There is a dearth of research that deals with operational risk management frameworks for SMEs. The expected contribution of this article, therefore, is twofold: firstly, it is envisaged that managers or owners of SMEs could use the proposed framework as a tool to appraise and minimise their operational risks; secondly, it will add to the current body of knowledge on risk appraisal for SMEs.

SME Financial Management

2013 ◽  
pp. 330-342 ◽  
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

scholarly journals Operational Risk Assessment of an English Academy in Yogyakarta

2020 ◽  
Vol 9 (2) ◽  
pp. 5-12
Author(s):  
Anastasia Filiana Ismawati
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Data Analysis ◽  
Operational Risk ◽  
Enterprise Risk Management ◽  
Operational Risks ◽  
Long Run ◽  
Enterprise Risk ◽  
Operational Activities

This research was conducted for the risk assessment on the operational activities in order to assist PT. XYZ in managing the operational activities which leads to the goals of the firm. The use of Enterprise Risk Management (ERM) can help the organization to manage the risks holistically using the intergrated methods. This research focused on the risk assessment in PT. XYZ, especially for its operating, and provided a strategy of improvement from the existing risks. The methodology used in this research is a case study with triangulation of sources as the tool to conduct the data analysis. The informants of this research are the Operational Manager of PT. XYZ and five teachers. The data was obtained by conducting interviews and there were six operational risks found which would be best to respond and to manage as soon as possible for minimizing the risks. The result of this research is to hope that PT. XYZ shall be able to manage the risks by using the ERM methodology in order to have the business in the long run and to be successfully competing in the market.

scholarly journals Effects of Enterprise Risk Management (ERM) and Economic Issues on the Performance of Manufacturing Sector-SMEs in Malaysia – A Conceptual Framework

2019 ◽  
Vol 8 (12S2) ◽  
pp. 593-597
Keyword(s):  
Risk Management ◽  
Conceptual Framework ◽  
Organizational Performance ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Enterprise Risk Management ◽  
Economic Issues ◽  
Enterprise Risk ◽  
Medium Enterprises

This study aims to construct a conceptual framework that describes effect of Enterprise Risk Management (ERM) on the relationship among organizational performance and economic issues. The study intended to establish whether ERM adoption and economic issues influence the performance of Small and Medium Enterprises (SMEs) as focusing in manufacturing sector. However, as compared to large businesses, small businesses became one of the highest failure rates. ERM is a form of micro risk management and a full approach to identify risk in all purposeful areas. However, based on previous studies, the study to examine the practices in adopting ERM especially in SMEs and the performance of SMEs are still lacking. Hence, the area of this paper will be focus on SMEs manufacturing which are 380 registered SMEs that listed under SME Corp. Malaysia.

SME Financial Management

2013 ◽  
pp. 1107-1119
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

PROFESSIONAL RISK ASSESSMENT USING KNOWLEDGE BASES IN SMALL AND MEDIUM ENTERPRISES

2010 ◽  
Vol 9 (4) ◽  
pp. 489-493 ◽  
Author(s):  
Sebastian Marius Rosu ◽  
George Dragoi ◽  
Costel Emil Cotet ◽  
Luminita Rosu
Keyword(s):  
Risk Assessment ◽  
Small And Medium Enterprises ◽  
Knowledge Bases ◽  
Medium Enterprises
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