Risk Management in the Segment of SMEs in V4 Countries (Significant Theoretical and Methodological Aspects)

Abstract

The presented scientific publication focuses on risk management in SMEs in the Visegrad Group area. The main objective is to define theoretical and methodological aspects in the area of risk management and quantify their impact on the risk management process. The main objective is accomplished by the partial objectives, focused on the identification and quantification of the impact of the socio-economic factors affecting the risk management process, classification of the most significant risks of companies in the V4 countries, analysis of the causes of individual risks, and the comparison of the approach to the risks and risk management between the V4 countries. The publication defines small and medium enterprises and clarifies a focus on V4 countries. The classification of risks and their specifics are introduced to determine the scope of the focus. The size of the company, age, gender and education of the entrepreneur and length of business for the analysis of influences on entrepreneurship are chosen as factors influencing the risks and the risk management approach. Various methods for risk management are described to complement the possibilities of approach to risk management. The next part describes the main scientific goal and several partial objectives. The last chapter includes the discussion of the importance of the business risks and the influence of selected factors on perceiving business risks, and on the approach to the risk management and the influence of selected factors on the risk management process. The results provide scientific knowledges about risks and risk management in the area of V4 countries as well as the comparison among these countries. A low level of knowledge of risk management in SMEs was confirmed. SMEs are not aware of benefits of risk management and do not evaluate the benefits of measures decreasing the risks. Some differences in risks perceiving among the entrepreneurs in terms of their social characteristics (gender, age and education of entrepreneur) and the characteristics of the company (size, length of business) were introduced. The summary in form of theoretical and methodological aspects were formulated. The findings enrich the knowledge in the field of risks and risk management in the area of V4 countries. The results have also practical implications for government and regional associations which are focused on help and optimization of business environment for SMEs. Company owners or risk managers in SMEs should be aware of the responsibility for setting up risk management in their businesses and they should educate themselves and their employees in this area to recognize and manage all risks threatening the business appropriately.