Research Output

Typology of risk management practices: an empirical investigation into German SMEs

  The business management literature has largely neglected the theme of risk management for Small- to Medium-sized Enterprises (SMEs). So the aim of this research was to explore the current state of risk management in
German SMEs. Derived from a comprehensive analysis of a questionnaire survey which was supported by research interviews, a multidimensional scoring approach to assess a firm’s risk management sophistication has been developed. The present approach does not evaluate one single scoring figure, as is usual. Instead, it allows a differentiated assessment by evaluating separate scoring figures for each aspect that a holistic risk management system should cover. Based on the scoring approach, this paper introduces a new typology of risk management practices. Making the Miles and Snow organisational typology applicable to assess risk management practices, three types – reactor,defender/prospector and analyser – reflecting the levels of sophistication,are extracted. Each of the three risk management types is described by its determinants with respect to the components of a holistic risk management.
Then recommendations are formulated on which actions a firm of the respective type should take to improve its risk management.

  • Type:

    Article

  • Date:

    28 February 2010

  • Publication Status:

    Published

  • Publisher

    Inderscience Enterprises Ltd

  • DOI:

    10.1504/IJESB.2010.031922

  • Library of Congress:

    HG Finance

Citation

Henschel, T. (2010). Typology of risk management practices: an empirical investigation into German SMEs. doi:10.1504/IJESB.2010.031922

Keywords

holistic risk management; project risk management; business planning; performance measurement; small- to medium-sized enterprises; SMEs; scoring; typology

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