Risk Management Practices in Small and Medium Enterprises: Evidence from Romania
Risk Management Practices in Small and Medium Enterprises: Evidence from Romania

Summary/Abstract: Small and medium enterprises (SMEs) face various risks and their survival is more easily threatened due to the lower volume of resources - both financial and non-financial. Integrating risk management into SMEs produces the same benefits as for a large enterprise, allowing the small business owner to act strategically, anticipate risk events and allocate resources to control risk events. This study aims to determine, on the one hand, whether the organizational factors of Romanian SMEs influence the extent to which risk management is integrated into the current activities of SMEs, and on the other hand if there is a significant relationship between the extent to which SMEs use risk management practices and the extent to which risk management is integrated into current activities. The data were collected from 164 representatives of Romanian SMEs by applying a questionnaire and analyzed using One-way ANOVA and Multiple Linear Regression at a significance level of 0.01. The results show that organizational differences affect the extent to which risk management is integrated into the current activities of SMEs. The results also show that there is a positive and significant relationship between the extent to which Romanian SMEs apply risk identification techniques, risk assessment analyses and risk treatment methods and the extent to which risk management is integrated into current activities.

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