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

Author

Listed:
  • Adina-Liliana PRIOTEASA

    (Bucharest University of Economic Studies, Romania)

  • Nicoleta CHICU

    (Bucharest University of Economic Studies, Romania)

  • Alina-Andreea ?TEFÃNESCU (MARIN)

    (Bucharest University of Economic Studies, Romania)

  • Alexandru Mihai BUGHEANU

    (Bucharest University of Economic Studies, Romania)

  • Ruxandra DINULESCU

    (Bucharest University of Economic Studies, Romania)

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.

Suggested Citation

  • Adina-Liliana PRIOTEASA & Nicoleta CHICU & Alina-Andreea ?TEFÃNESCU (MARIN) & Alexandru Mihai BUGHEANU & Ruxandra DINULESCU, 2020. "Risk Management Practices in Small and Medium Enterprises: Evidence from Romania," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(1), pages 1-15, June.
    • Handle: RePEc:rom:merase:v:5:y:2020:i:1:p:1-15
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    References listed on IDEAS

    as
    1. Ludovica Ioana SAVLOVSCHI & Nicoleta Raluca ROBU, 2011. "The Role of SMEs in Modern Economy," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 277-281, June.
    2. Eva Maria Falkner & Martin R.W. Hiebl, 2015. "Risk management in SMEs: a systematic review of available evidence," Journal of Risk Finance, Emerald Group Publishing, vol. 16(2), pages 122-144, March.
    3. Janney, Jay J. & Dess, Gregory G., 2006. "The risk concept for entrepreneurs reconsidered: New challenges to the conventional wisdom," Journal of Business Venturing, Elsevier, vol. 21(3), pages 385-400, May.
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    More about this item

    Keywords

    organizational factors; risk management; risk management practices; Romania; SMEs.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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