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A structured approach to risk management for South African SMEs
Author(s)
Smit, Yolandé
Date Issued
2012
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
Risk, prevalent in all organisational activities influences the achievement or non-achievement of organisational goals. This necessitates the need for a structured process for effective risk management. Traditionally, risk management strategies were centred on insurance solutions, however due to changes in the business landscape, organisations moved towards an integrated, holistic strategy-focused risk discipline. Small and Micro Enterprise (SME) owner-managers are however largely ignorant about the risks faced by their enterprises. They still respond reactively to risk by utilising risk avoidance and risk transfer techniques. These non-structured approaches to risk impede on SME growth and success, limiting their role to providing employment, contributing to investment, and contributing to the economy as a whole. In this research study a SME risk architecture framework that can be used concurrently with corporate governance frameworks as well as the organisation’s performance measurement system is proposed resulting in a structured approach to managing SME risks. The proposed SME architecture framework consists of three interrelated components, namely:
SME risk consciousness, focusing on risk sources most commonly identified as obstacles to SME success and survival.
The SME risk management process that constitutes the steps SME owner-managers should follow in addressing risk sources.
The SME risk management framework providing owner-managers with a mechanism to deal with risks at all organisational levels through effective risk planning, risk implementation and risk evaluation processes.
SME risk consciousness, focusing on risk sources most commonly identified as obstacles to SME success and survival.
The SME risk management process that constitutes the steps SME owner-managers should follow in addressing risk sources.
The SME risk management framework providing owner-managers with a mechanism to deal with risks at all organisational levels through effective risk planning, risk implementation and risk evaluation processes.
Additional information
Thesis (DTech (Internal Auditing))-- Cape Peninsula University of Technology, 2012
Subjects
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Name
structured approach to risk management for SA SMEs.pdf
Size
6.48 MB
Format
Adobe PDF
Checksum
(MD5):61c64d9c3d035c5a7c319985fa6a3f09