Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/4924
Title: Justifying the need of enterprise risk management (ERM) implementation in small and medium sized enterprises (SMEs)
Authors: Zammit, Jessica (2012)
Keywords: Corporate governance -- Malta
Risk management -- Malta
Small business -- Malta
Issue Date: 2012
Abstract: Purpose: Recent years, ERM has gained an increased amount of attention and has been accepted by businesses especially after the significant corporate governance scandals and disasters including articles in media which put the blame directly on poor risk management practices. In view of this, the purpose of this study is to justify the need of Enterprise Risk Management (ERM) implementation in Maltese SMEs with their readiness to accept it. Design: The quantitative research was conducted through a questionnaire sent to 300 SMEs, out of which 113 responses were received representing a response rate of 37.7%. Findings: Results from this research confirm that although small and medium sized enterprises (SMEs) are indeed making efforts to invest in risk management practices, ERM seems to be taking a long time to be implemented in their corporate governance structure. One can still feel resistance and in spite of the absence of ERM in certain SMEs, participants feel that there has been progress in the level of discipline in decision-making. Conclusions: Through this study it can be concluded that whilst findings show the increased awareness of ERM, yet formal risk management is still not accepted. SMEs may not feel the importance of having a structured risk management practice in place. A reason may be due to the lack of financial and human resources dedicated to ERM implementation. Value: Although SMEs are small yet the risk they run is just as serious as that of larger organisations. Consequently, no matter how small the entity is, it calls for an effective risk management process. In today's business environment, there is an increasing demand for the practice of ERM. This can give a value-added result that will prove of great help to the organisation.
Description: B.ACCTY.(HONS)
URI: https://www.um.edu.mt/library/oar//handle/123456789/4924
Appears in Collections:Dissertations - FacEma - 2012
Dissertations - FacEMAAcc - 2012

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