Risk governance in the textile/clothing industry: A case study in medium enterprises

Abstract

There are few studies on risk governance in medium-sized companies in the textile/clothing industry because it corresponds to an emerging field in which research is evolving. This is why it becomes a relevant field of study, to continue strengthening the development of these elements of risk management, to create and add value in the management of organisations from this field. In addition, medium-sized companies may have fewer resources to devote to analysis, planning and implementation of the topic than large companies. For this reason, the objective of this study is to analyse the risk governance in this type of company, to identify the guidelines and directives that govern it, describe the relationship between risk governance and corporate governance and, finally, refer to practices of risk culture, accountability and communication implemented under this conception. The study was developed using a methodology with a qualitative approach and descriptive scope. Semi-structured interviews with eight companies and one expert were used as an instrument for collecting information. The main findings of the research highlight that the companies that participated in the study are aware of the importance of structuring risk governance. However, most of the companies interviewed apply it empirically but are interested in working on its development. The need to formalise risk management processes and to consider the appropriate distribution of decision-making according to organisational structure and available resources is evident for medium-sized companies, particularly in the textile/clothing sector, however, this is a suggestion that could serve both nationally in Colombia and internationally and could favour the expected results in all sectors of the global economy.