Practical Risk Management Approaches among Small and Medium Enterprises

Abstract

The focus on economic diversification has led to increased support for the establishment and development of SMEs by Omani government in order to contribute in GDP. Risk management has become a major challenge for SMEs in the country due to the lack of experience and knowledge. This research focuses on 'Risk Practical Management Strategies' adopted by SMEs to manage risk. The research is accomplished through a qualitative approach, gathered primary data through interviews and analyzed thematically to establish the trends and patterns in the data. The findings show that there is substantial awareness of the importance of risk management specially in financial and operational which are the key risks faced by businesses, coupled with reputational risk that is associated with the increased use of ecommerce. The RPMS are largely linked to training and developing awareness about risk among SMEs.

Impact of Intellectual Capital and Risk Attitude Through Financial Literacy on Business Sustainability in Indonesia Batik Smes

“…Internal organizational capital is needed to develop the organization. However, organizational capital can also provide value for external parties to generate trust, involvement, and loyalty to the activities carried out by the organization (C. (Redha et al, 2021). A weak risk attitude makes it difficult for creative industries to adapt to changes in the environment that are so fast and uncertain.…”

SMEs Must Go Online—E-Commerce as an Escape Hatch for Resilience and Survivability

“…Accessibility, flexibility, and convenience make EC the perfect platform for businesses and consumers in the modern age. Although EC research is still in its early stages most of the studies highlight the benefits associated with embracing this revolutionary advancement in global commerce (e.g., [25,38,[53][54][55][56]). Nonetheless, a great percentage of SMEs are still trying to find their place into this new context.…”

“…The first dimension considers the owners/managers' individualities that can constrain or enable technology adoption [63]. According to some scholars, a lack of awareness can lead owners/managers not to perceive the associated benefits in adopting EC [30,54]. Furthermore, if the owners/managers have a higher level of technology illiteracy, it is very unlike to change their business towards digital platforms [67].…”

“…Furthermore, if the owners/managers have a higher level of technology illiteracy, it is very unlike to change their business towards digital platforms [67]. Moreover, Qubtan et al [54] conducted a study to find that awareness towards risk management is very high. This finding is a common theme in the literature because SMEs are reluctant to take risk in their business strategies [68], consequently hindering adopting and implementing EC [69].…”

“…According to Thompson et al [36] the implementation of the internet in SMEs can act as a source of innovation, enabling firms to decrease traditional transaction costs. Hence, EC can provide multiple benefits for SMEs such as an increase of effectiveness, reduction of costs, operational efficiency, international market access, and increased innovative behavior (e.g., [7,24,36,[53][54][55][56]).…”