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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...
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Technology advancement is a primary element in differentiating Industry Revolution 4.0 (IR 4.0) from previous Industrial Revolutions. This revolution changes the nature of workforces, and the way people work. As a result of rapid technological advancement through Industry 4.0, SMEs are finding it more difficult to innovate and adopt. SMEs have diff...
Citations
... Bhutan should not be lagging while the whole world is moving forward. At the empirical level, several researches were also conducted to study importance of risk management and SMEs, for example, Hiebl et al. [9] , Naude and Chiweshe [10] , and Pratono [11] and such studies are scanty in Bhutan. Besides the important impact of ERM on SMEs, the role of the SMEs is greatly influenced by the managers who manage them, be it by the owner or manager, and researchers tend to agree to the importance of considering owner/manager characteristics in understanding business performances. ...
The purpose of this research was to empirically investigate the existence of Enterprise Risk Management and to determine the influence of Personal Entrepreneurial Competencies on the Enterprise Risk Management of the Small-medium Enterprises (SMEs). To achieve the objectives of the study, empirical data is collected from 300 production and manufacturing SME owners and managers from the economic region of Bhutan using closed-ended structured questionnaire. The Structural Equation Modelling was employed as the main technique for data analysis to test the proposed model and hypothesis. The findings revealed the relationship between Personal Entrepreneurial Competencies and Enterprise Risk Management to be statistically significant. Furthermore, the study found that the SME owner/managers demonstrated to be in the “Strong” category on four Personal Entrepreneurial Competencies items and in “Moderate” category for the remaining six items, which are vital to understand in a developing nation. The novel contribution of this research focuses on integrating Enterprise Risk Management and strategic planning processes to gain a better understanding of the enterprise’s key risks and opportunities that are relevant to strategic objectives, as well as defining the leadership team’s responsibilities to establish clear risk oversight and accountability.
... From an academic point of view, the study addresses an affirmed empirical evidence-based research gap on the topic of RM (de Ara ujo Lima et al., 2020;Testorelli et al., 2022), especially with SMEs as the scope of research (Marcelino- Sadaba et al., 2014;Neves et al., 2014). Among existing research can be found various classifications of risks (De Camprieu et al., 2007;Dey, 2012;Qazi et al., 2016), conceptual frameworks emergent from literature reviews (Marcelino-Sadaba et al., 2014;Naude and Chiweshe, 2017;Testorelli et al., 2022) and RM tools and methodologies (Kirytopoulos et al., 2001;Leopoulos et al., 2006), barely any of those frameworks and tools; however, have been tested with SMEs. Considering the variety of industry fields and levels of knowledge and awareness of risk management, the authors developed a standardised framework for assessment based on ISO 31000, which captures the attitudes and perceptions of SMEs about RM with ease and can be universally applied to any geographical area or the industry field around the world. ...
Purpose
The Scottish economy was experiencing steady growth prior the hit of the COVID-19, with the pandemic causing the government to announce extreme lockdown measures with unprecedented impact on small and medium-sized enterprises (SMEs). Whilst some of the industry sectors in Scotland took a lighter hit, a large part of the organizations had to either adapt or completely disrupt their business. An essential aspect of their survival, risk management (RM) was among the areas requiring the most significant acceleration. This study compared the RM practices implemented by Scottish SMEs prior and after the outbreak as well as examined the attitudes of key decision-makers in the SMEs in relation to risk, including their perceived readiness for another crisis of similar significance.
Design/methodology/approach
An online survey based on ISO 31000 RM guidelines was distributed to 232 Scottish SMEs. Based on the official government reports and existing knowledge on how SMEs around the world have handled crisis events within the past 20 years, the authors developed the hypothesis that crisis events significantly accelerate SMEs' RM implementation. Around 13 items were tested in relation to the hypothesis and responses were tested via two-tailed T -test to establish significant statistical difference.
Findings
The research provides insight into the current state of risk management practices implemented by Scottish SMEs. As expected, SMEs showed significant difference in their RM implementation prior and after the COVID-19 outbreak. Whilst this has been viewed as a positive, motivations, priorities and approaches in managing risk demonstrated by the SMEs is questionable with views to their sustainable long-term recovery. The study highlights the lack of confidence instilled within the SMEs that they can handle another crisis of similar significance and provides directions for further investigation and improvements with the aim of helping the SMEs prepare better to mitigate the consequences of future crisis events.
Originality/value
In academic sense, the study offers a tested universal framework and a detailed questionnaire for assessment of RM strategy, applicable to organisations of various type, size and geography. Several implications with regards to managerial practices have been highlighted, including the neglect of the SMEs’ own internal environments and its significance in their risk strategies, the predominantly reactive approach to RM displayed by most Scottish SMEs as well as the neglect of compliance risk leading to potential quality and customer satisfaction issues preventing SMEs from full post-crisis recovery.
... Notably, RM is a systematic process comprising of risk identification, risk assessment, and risk response whilst putting in place contingency plans [2,12,40]. Alternatively, risks are determined at the identification stage followed by analysis, response, and monitoring [48]. ...
... Researcher(s) Findings relative to RQ2 [7] Indicate resistance to changes relative to the adoption of innovative agile project management and lean product development strategies [15] Present a positive impact of continuous information monitoring and adoption of a roadmap in innovation strategy decisions [40] Highlights lack of research relative to operational risk management framework [25] Highlights a dire need for managing construction risks and further research [28] Recommends statistical methodology for inventory management and stock control there are a number of suggestions relative to improving project delivery, which include a need to adopt agile methods. The evident RM gaps essential for improving project performance indicate the need for agile and innovative approaches despite limited relevant research output. ...
Risks in construction projects can be dynamic and complex in nature. Construction projects continue to succumb to the impacts of these varied risks thus requiring innovation in risk management practice (RMP). Like most developing countries, the South African Construction Industry (SACI) is not an exception in terms of consistent record of project failures. To date, there are different practices in risk management that are being utilised across the SACI. However, there are knowledge gaps in the RMP that require an agile approach for improving project delivery within the SACI. Furthermore, it is vital to note that agile approaches ensure inter alia constant improvement and innovation, as opposed to traditional methods. As such, introducing an Agile RMP (ARMP) tool is essential to transform the SACI in terms of project delivery success as findings have shown. This exploratory literature review-based study is aimed to analyse the effectiveness of traditional Risk Management (RM) methods and assess the need for an ARMP approach relative to improving project delivery within the SACI using eleven (11) snowball sampled articles. Through content analysis, the study revealed the need for further research on agile methods and training among others. However, this requires an in-depth investigation and inputs from stakeholders in the future. In so doing, this will reduce the effects of prevalent risk management’s knowledge gaps among project stakeholders. Furthermore, it is vital to introduce digitalisation-enable innovative agile methods for identifying and assessing risks that affect the construction projects whilst stipulating pragmatic training tools essential for improving the project delivery. Ultimately, the formulation of an ARMP framework appropriate for the SACI will contribute to sustainable construction projects.
... Solomon, Solomon, Norton, and Joseph (2000) define risks as the uncertainty associated with both potential gains and losses, about which the nature of risks information might be seen from both positive and negative aspects (ICAEW, 2000). ICAEW (2000) further elaborates operational risks as risks occurrences that affect operations to become inefficient and ineffective in not only executing the firm's business model but also satisfying customers and achieving the firm's quality, cost and time performance objectives (Naude & Chiweshe, 2017). In another study, risk refers to a disturbance on operational events that causes disagreement to expected performance that results in undesirable consequences of an occurrence of a loss (Crovini et al. 2021). ...
"Micro and small enterprises have become one of the most important sectors that contribute significantly to the country’s economic growth. In the current era of the digital economy, managing challenges is paramount to survive in the economic environment. Business owners are expected to know how to minimize the challenges by identifying operational risks that occurred in their businesses, which may impede their business survivability. This study is carried out to discover the challenges in managing potential occurrences of operational risks among micro and small enterprises in Kuala Selangor, Selangor, Malaysia. Interviews were conducted with selected business owners who operated their businesses in Kuala Selangor in order to obtain data about the challenges faced by the entrepreneurs and perceived operational risk occurrences in the current environment. The limitations and recommendations for future research are addressed in the final section."
... The literature reviewed in Section 2 included several authors supporting that SB managers should include risk analysis in their strategies to improve OBP. Esmaeel et al. (2018), Kato and Charoenrat (2018), Kim et al. (2017), Naude andChiweshe (2017), andZeininger et al. (2017) agreed on that internal and internal business factors' vulnerability, and risks are critical when setting strategies for SBs performance and business continuity. ...
... The literature reviewed in Section 2 included several authors supporting that SB managers should include risk analysis in their strategies to improve OBP. Esmaeel et al. (2018), Kato and Charoenrat (2018), Kim et al. (2017), Naude andChiweshe (2017), andZeininger et al. (2017) agreed on that internal and internal business factors' vulnerability, and risks are critical when setting strategies for SBs performance and business continuity. ...
... stated that SBs experience operational vulnerabilities because of the evolving and competitive characteristics of business environments. SB managers should use operational risk management frameworks to monitor business vulnerabilities(Naude & Chiweshe, 2017).Risk management includes risk identification, risk assessment, risk response, and risk monitoring and control(Naude & Chiweshe, 2017). Several SB factors could increase business vulnerability, and not being aware of them could increase risks of business failure.Esmaeel et al. (2018) stated that SB managers could measure business performance through three elements: (a) business growth, (b) profitability, and (c) market performance.Kato and Charoenrat (2018) indicated that SBs' success depends on the vulnerability of their external factors, business continuity knowledge, and business continuity management strategies. ...
... The literature reviewed in Section 2 included several authors supporting that SB managers should include risk analysis in their strategies to improve OBP. Esmaeel et al. (2018), Kato and Charoenrat (2018), Kim et al. (2017), Naude andChiweshe (2017), andZeininger et al. (2017) agreed on that internal and internal business factors' vulnerability, and risks are critical when setting strategies for SBs performance and business continuity. ...
... The literature reviewed in Section 2 included several authors supporting that SB managers should include risk analysis in their strategies to improve OBP. Esmaeel et al. (2018), Kato and Charoenrat (2018), Kim et al. (2017), Naude andChiweshe (2017), andZeininger et al. (2017) agreed on that internal and internal business factors' vulnerability, and risks are critical when setting strategies for SBs performance and business continuity. ...
... stated that SBs experience operational vulnerabilities because of the evolving and competitive characteristics of business environments. SB managers should use operational risk management frameworks to monitor business vulnerabilities(Naude & Chiweshe, 2017).Risk management includes risk identification, risk assessment, risk response, and risk monitoring and control(Naude & Chiweshe, 2017). Several SB factors could increase business vulnerability, and not being aware of them could increase risks of business failure.Esmaeel et al. (2018) stated that SB managers could measure business performance through three elements: (a) business growth, (b) profitability, and (c) market performance.Kato and Charoenrat (2018) indicated that SBs' success depends on the vulnerability of their external factors, business continuity knowledge, and business continuity management strategies. ...
Some small business (SB) are exiting their markets because their managers used
ineffective strategies to improve business performance. Providing SB managers with an integrative view to identify effective strategies could enhance overall business
performance (OBP), minimizing the risk of closing permanently. Grounded in the general system theory, the purpose of this qualitative multiple case study was to explore strategies that SB managers who received the Malcolm Baldrige National Quality Award between 2007 and 2018 in the United States used to achieve outstanding OBP. The participants were 6 high-level managers who participated in setting the strategies to improve OBP. Data were collected using semistructured interviews, the company’s 5-year performance analysis report, and member checking. Initial data were categorized in codes, and themes were identified, refined, and evaluated. Three major strategies SBs should use to secure outstanding OBP are: identify the reasons for a business to exist, identify the internal and external elements impacting the business performance, and understand the dynamic interaction among those elements for improvement. A recommendation for SB managers is to apply a systems approach, set plans, and identify effective strategies by considering the most impactful elements and their interaction for
continuous improvement in line with the business mission realization. The implications for positive social change include the potential to help SB managers sustain their business to provide stable employment, develop local economies, and enhance families’ and communities’ lifestyle level.
... Table 7. HOR 1 of case study 2 JIMA 5. Development of halal supply chains framework The risk management framework should focus on risk identification, the possible impact of risks, risk mitigation and monitoring, and risk control (Chang et al., 2015;Sharma and Bhat, 2012;Wagner and Bode, 2008;Waters, 2009). In addition, the proposed framework can also include the risk category, the person who has responsibility and severity, and the probability to assess each risk (Naude and Chiweshe, 2017). Based on the previous research conducted by Adawiyyah et al. (2021) on milkfish brain, results gave as many as 28 risks and eight risk agents. ...
Purpose
This study aims to identify the risks, the risk agents, and the mitigation steps and then propose a halal supply chain risk management framework for frozen food halal industries, especially for the milkfish brain product.
Design/methodology/approach
Following the quantitative research design, semi-interviews with the owner of the milkfish brain company and data were analyzed using the supply chain operations reference model and the House of Risk method. The development of halal supply chain risk management framework involves several phases. First, to map the supply chain activities. Next is identifying the risk and risk agent. Then measurements of mitigations are based on the company’s resources that have a profound effect on risks such as employee activity, machinery and work environment.
Findings
The findings in this study are the prioritized mitigations for the frozen food companies, especially the milkfish brain products, are training of good manufacturing practice, making and applying halal standard operating procedure, the creation of clean-up watch schedules, halal use of raw materials and additional materials, and additional purses and facility.
Research limitations/implications
This study may further use various perspectives in supply chains such as suppliers, distributors, agents and consumers.
Practical implications
The risks, risk agents, and mitigation steps are used to develop a general framework for halal supply chain risk management which can be used by all frozen food companies, especially for milkfish brain products.
Originality/value
This study is one of few studies about halal supply chain risk management for frozen food industries. The study contributes to the effort of halal supply chain risk management by proposing general framework for milkfish brain halal supply chain risk management. The risks, risk agents and mitigation efforts are established based on impact and intensity that affect risk occurrence.
... Additionally, business owners with fresh concepts and innovations should file for patents to protect their intellectual property and themselves from the gains of their rivals, who are most likely to affect them. Among the many risks that entrepreneurs must manage, in addition to bankruptcy, are financial, competitive, environmental, reputational, political, and economic risks [64]. To convince investors that they are aware of the risks, business owners must carefully plan their budget and present a realistic business plan [65]. ...
Sustainable entrepreneurs launch businesses to meet social and environmental needs while advancing the interests of the larger community. Sustainable entrepreneurs encounter particular difficulties when starting their businesses because of the distinction between creating and appropriating personal and social values. This study examines the effects of perceived risks and barriers on sustainable entrepreneurship through the mediating role of government support in SMEs in Algeria. This study used a quantitative research methodology that combined primary and secondary data to gather the necessary data from 230 small and medium-sized enterprise entrepreneurs through purposive sampling techniques and simple random sampling to estimate the requirements in Oran region clusters, Algeria. The proposed research model applied a structural equation model, growth path modeling analysis, correlation matrix, and analysis using the SPSS and AMOS software suites to ascertain the causal relationship between perceived risks and barriers and business performance. The main result revealed that perceived barriers impact sustainable entrepreneurship more during business startups. Likewise, perceived risk significantly affects sustainable entrepreneurship. Instead, government support has substantially mediated the relationship between perceived risk and sustainable entrepreneurship and perceived barriers. Furthermore, the diverse and complex stakeholder relationships make sustainable entrepreneurship more likely to challenge perceived risks and barriers during business startup. These results might be an essential cue for governments and private capital providers to enhance the environment for entrepreneurship.
... The challenge of risk management (RM) implementation in small medium enterprises (SMEs) in developing countries necessitates RM guidelines from different angles affecting enterprise risk management (ERM). As much as credit should be given to research that has been conducted to date to simplify RM in SMEs (Deni and Riswanto 2019;Havierniková and Okręglicka 2019;Ibiwoye et al. 2020;Naude and Chiweshe 2017;Žigienė et al. 2019),extant research has not drawn attention to the governance effect and information aspect of a holistic RM approach in SMEs. The impact of information governance may not be isolated from ERM and might not have received attention from researchers, especially for SMEs. ...
... Researchers have scrutinised how ERM can be successfully implemented in SMEs from different perspectives (Deni and Riswanto 2019;Havierniková and Okręglicka 2019;Ibiwoye et al. 2020;Naude and Chiweshe 2017;Žigienė et al. 2019). The successful implementation of ERM is informed by factors such as an executive risk committee; a dedicated corporate risk group Chief Risk Officer (CRO); an internal audit department; skilled managers to promote and engage employees with ERM; risk appetite statements; risk indicators; and the integration of risk with strategic and business planning (Fraser and Simkins 2016). ...
Failure to holistically manage risk in Small Medium Enterprises (SMEs) is one of the major causes of small businesses failure. To answer the research question as to what supports the adoption of Enterprise Risk Management (ERM) in SMEs, this research aims to analyse Risk Management (RM) in SMEs and develops a framework to facilitate the adoption of ERM. In achieving the primary objective, the research establishes for SMEs: the sources of information for RM; the importance of information governance in managing risk; the fundamentals of RM; and the pillars of RM. Previous research conducted on RM in SMEs reviewed the challenges of the successful implementation of ERM in SMEs and proposed different ways to address these challenges. The common ground reached by the research is that there is a need for the simplification of ERM in SMEs. We followed an interpretive philosophy with an inductive research approach and employed a qualitative methodological choice with a cross-sectional time horizon through data collection, employing a review of the scholarly literature, to, in the end, develop a conceptual Small Medium Enterprises Risk Management Framework (SMERMF). The limitation of the research is that the empirical part of the research has not been concluded yet. To present the results, that will be compared to the theory and conclude the research.
... Notably, RM is a systematic process comprising of risk identification, risk assessment, and risk response whilst putting in place contingency plans [2,12,40]. Alternatively, risks are determined at the identification stage followed by analysis, response, and monitoring [48]. ...
... Researcher(s) Findings relative to RQ2 [7] Indicate resistance to changes relative to the adoption of innovative agile project management and lean product development strategies [15] Present a positive impact of continuous information monitoring and adoption of a roadmap in innovation strategy decisions [40] Highlights lack of research relative to operational risk management framework [25] Highlights a dire need for managing construction risks and further research [28] Recommends statistical methodology for inventory management and stock control there are a number of suggestions relative to improving project delivery, which include a need to adopt agile methods. The evident RM gaps essential for improving project performance indicate the need for agile and innovative approaches despite limited relevant research output. ...
Abstract. Risks in construction projects can be dynamic and complex in nature. Construction projects continue to succumb to the impacts of these varied risks thus requiring innovation in risk management practice (RMP). Like most developing countries, the South African Construction Industry (SACI) is not an exception in terms of consistent record of project failures. To date, there are different practices in risk management that are being utilised across the SACI. However, there are knowledge gaps in the RMP that require an agile approach for improving project delivery within the SACI. Furthermore, it is vital to note that agile approaches ensure inter alia constant improvement and innovation, as opposed to traditional methods. As such, introducing an Agile RMP (ARMP) tool is essential to transform the SACI in terms of project delivery success as findings have shown. This exploratory literature review-based study is aimed to analyse the effectiveness of traditional Risk Management (RM) methods and assess the need for an ARMP approach relative
to improving project delivery within the SACI using eleven (11) snowball sampled articles. Through content analysis, the study revealed the need for further research on agile methods and training among others. However, this requires an in-depth
investigation and inputs from stakeholders in the future. In so doing, this will reduce the effects of prevalent risk management’s knowledge gaps among project stakeholders. Furthermore, it is vital to introduce digitalisation-enable innovative agile methods for identifying and assessing risks that affect the construction
projects whilst stipulating pragmatic training tools essential for improving the project delivery. Ultimately, the formulation of an ARMP framework appropriate for the SACI will contribute to sustainable construction projects.
Keywords: Agile risk management practice · Project delivery · Risk management · Risk management practice · South African construction industry
