A systemic risk management model for SMEs under financial crisis
International Journal of Organizational Analysis
ISSN: 1934-8835
Article publication date: 5 October 2012
Abstract
Purpose
The “business‐risk” relationship across countries does not fit exactly into a “model” nor does it have a pure palliative effect. Following this idea, the purpose of this research is to reinforce a comparative study on small to medium‐sized enterprises (SMEs) handling both risk and crisis management according to a new tailored model of a balance scorecard (BS). This new model of risk and crisis management aims at improving both SMEs' management adaptation and performance across all of crisis' stages, something not attempted so far in the literature.
Design/methodology/approach
The application of such a BS comes from the author's experience as a banker financing various SMEs industries, as a bank consultant on risk management, yet primarily from the results of a survey performed on a set of Romanian and Cypriot SMEs, equal‐proportionally selected from the area of trading, manufacturing, and services. The data regard the period 12/2008‐06/2011 as representative for the latest global financial crisis affecting the entire European Union region, too.
Findings
Coincidently or not, this study's results show a significant improvement of the financial performance of the SMEs who employed this model compared to those who did not.
Originality/value
This model's simplicity appeals to managers and regulators in understanding important business risks and crisis related phenomena. Backed by this idea, this research underpins a comparative study on SMEs handling risk and crisis management according to a new tailored model of a BS.
Keywords
Citation
Mihai Yiannaki, S. (2012), "A systemic risk management model for SMEs under financial crisis", International Journal of Organizational Analysis, Vol. 20 No. 4, pp. 406-422. https://doi.org/10.1108/19348831211268607
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited