Suchergebnisse

• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Types of Risk Management Practices Derived from Questionnaire and Interview Scoring

  Thomas Henschel

  …205 6 Types of Risk Management Practices Derived from Questionnaire and Interview Scoring The aim of this chapter is, built on the scoring results… …of the questionnaire (Chapter 4) and the interviews (Chapter 5), to develop a typology for the evaluation of risk management practices for SMEs… …theoretical presentation of the risk management types their practical substantiation is developed by describing examples of companies which participated in the… …interviews and, partly, also in the questionnaire (Section 6.2). 6.1 Types of Risk Management Practices The typology for risk management practices to be… …. The Miles and Snow approach has inspired the author of the present thesis to make it applicable for the identification of types of risk management… …practices. Using the Miles and Snow approach as a “shell,” this thesis presents a framework for a comprehen- sive assessment of risk management capability… …, leading to the identification of three types of risk management practices. Such a typology approach dealing explicitly with different aspects of risk… …management is a new contribution to the field of risk management. The classification of the risk management types will make use of the scor- ing variables… …have been derived from the questionnaire and interview findings, with regard to the various aspects of a holistic risk management. To extract a… …of Risk Management Practices 206 and by an in-depth analysis of all interview transcripts and notes. The type definitions will each be illustrated in…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Practical Implications

  Thomas Henschel

  …263 7 Practical Implications This chapter on practical implications for SME risk management practices will first discuss which deficits appear in… …the risk management types developed in Chapter 6, and it proposes which measures must be taken if the companies are to continue to develop positively… …management types (Section 7.2). The chapter concludes by presenting details of the components of a holistic risk management framework (see Section 2.1) and… …Types of Risk Management Practices A summary is given of implications being specific for the risk management types derived in Section 6.1, with… …explanations on the appropriate action needed to improve their risk management. The following sections deal with the weaknesses identified within the de-… …bles 6.1 to 6.3. 7.1.1 Reactor Concerning the implementation of a risk management, the reactor type reveals the largest need for action. Strategy and… …Implications 264 – management fails to articulate a viable organizational strategy – a strategy is articulated but technology, structure and processes are not… …linked to it in an appropriate manner – or management adheres to a particular strategy-structure relationship even though it is no longer relevant to… …to date. The first priority is to im- prove the management structure. Especially in the areas of business planning and controlling essential… …development depends essen- tially on the management recognizing the sense of urgency and the willingness to make demands on professional assistance. Business…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Literature Review

  Thomas Henschel

  …21 2 Literature Review This chapter assembles literature on various aspects of risk management which together may constitute a comprehensive… …management and related topics. The issues dealt with are centred around what is called by this thesis the “holistic risk management approach.” Section 2.2… …analyses the research into management behaviour and the attitude to risk, and it describes the special characteristics of SMEs. Section 2.3 reviews business… …– such as the Balanced Scorecard – and their application for risk man- agement purposes. Risk management in the stricter sense is discussed in Sec-… …tion 2.5, with its aspects of risk management process (Section 2.5.1), risk management organization (Section 2.5.2) and project risk management (Sec-… …tion 2.5.3). In Section 2.6 typologies to assess business strategies are critically reviewed, whether they already cover risk management considerations… …or whether they can be adopted to evaluate the companies’ risk management ca- pabilities. Section 2.7 then summarizes the findings of the literature… …review which have shown to be of particular relevance for the approach of this thesis. 2.1 Holistic Risk Management Approach Although risk is pervasive… …throughout society, this thesis narrows its focus by concentrating on business risk management in SMEs. The Faculty of Finance and Management of The Institute… …of Chartered Accountants in England and Wales (2002) states about SMEs: “... risk management has become established as a core business activity. How-…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Introduction

  Thomas Henschel

  …1 1 Introduction The present PhD thesis presents an empirical approach to risk management practices in selected industries of German small to… …medium-sized enterprises (SMEs). Section 1.1 of this introductory chapter discusses risk management in Germany. SMEs are of great importance in Germany… …management and presents the reactive and proactive risk management paradigms. When facing the man- agement of individual projects companies have to deal with… …both local and global risk considerations, which means the consolidation of single project risk assessments into the company-wide risk management… …research approach and the outline of the subse- quent chapters. 1.1 Background: Risk Management in Germany 1.1.1 Risk Management Deficiencies in Small to… …empirical business management research (see Ossad- nik et al., 2004; Berens et al., 2005). Concerning the current state of risk man- agement in Germany there… …management suitable for SMEs could be designed (Consultation and Research Centre of the Institute of Chartered Accountants in England and Wales – briefly… …: ICAEW, 2005). This fact is often explained by risk management being a very young branch of business management theory which has yet not developed… …no empirical results on project risk management in SMEs (Guserl, 1996; Troßmann and Baumeister, 2004; Alquier and Tignol, 2006) the characteris- tics… …of risk management in project-oriented companies will be given special consideration. 1.1.2 Legal Regulations Concerning Risk Management, Basel II In…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Interview Results

  Thomas Henschel

  …indicated in Chapter 3, the research interviews particu- larly investigated the influence of management behaviour on the risk man- agement in SMEs. Section… …5.2 explores quantitative interview issues. This part covers the same risk management aspects as the corresponding questionnaire in Sec- tion 4.3. In… …proach, scoring variables to judge risk management abilities are constructed (Section 5.3). Then, being specific for the interview approach, the moderating… …effect of management behaviour on the establishing and maintaining of risk management is discussed (Section 5.4). The research interviews were carried out… …and risk management (Section 5.2.5) fol- low. The results are discussed with respect to enterprise size effects as well as with respect to the… …“Controlling function” is a German peculiarity. The English language area prefers the term “management accounting.” Interview Results 152 comparable) to… …examine whether the risk management practices of the respec- tive firm have been changing over time. The interview firms were selected according to the… …accountant 21 55.3% Tax advisor 13 34.2% Management consultant 1 2.6% No external support 3 7.9% Total 38 100.0% Firstly, the external business environment… …the certified chartered accountants being preferred in medium-sized and large firms. A management consultant is brought in very seldom. Summarizing… …in business management. This tendency is essentially found in small firms. Table 5.3 Business Planning Components (I 3.1*) and Time Horizon (I 3.2)…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Questionnaire Results

  Thomas Henschel

  …and the implementation of risk management in German small to medium-sized enterprises. In a first approach, the current state of risk management has… …management systems (Section 4.4). To validate the self-developed scoring of “risk man- agement practices,” the questionnaire results will be analysed by… …management approach, is discussed (Section 4.2.2). As a first step toward the main topic of risk management, the univariate analysis reports on early warn- ing… …satisfactory. The average response rate of empirical studies on SME risk management practices goes from 8% to 17% (see Consultation and Research Center of the… …ICAEW, 2005, pp. 6–7; Clink, 2001, p. 90). Questionnaire Results 98 4.2.2 Business Planning as a Base for Risk Management As emphasized in the… …not well-developed (see the Appendix F, Question 1.8). 4.2.3 Early Warning Systems for Risk Identification To approach the subject of risk management… …whether they even may overestimate the capability of their risk management efforts. 4.3 Bivariate Analysis In the following sections, selected… …univariate analyses have already indicated for the respective totals (Section 4.2.2). This fact must be taken into account when developing risk management… …instruments of performance measurement such as Balanced Scorecard, shareholder value and knowledge management have already become established in SMEs. Then it… …will be inves- tigated, to what degree these instruments are employed for risk management purposes (Questions 3.1–3.3). The use of instruments of…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Research Methodology and Research Design

  Thomas Henschel

  …in 2002, only little (and unreliable) data was available on the state of risk management in German SMEs (see e.g. Kessler, 2000, p. 64; Kirchner, 2002… …, p. 200). This gave rise to the decision to determine current risk management practices in German SMEs by an explor- ative approach. The literature… …review has impressively revealed that risk management is a relatively new research area. No general standard has been established for risk management being… …suitable for SMEs (see, for example, ICAEW, 2005; Alquier and Tignol, 2006). Most literature sources on risk management deal with large firms. Concerning the… …. Moreover, getting an overview of current risk management prac- tices means holding a larger number of case studies; the generalization of the results of only… …a sensible and cost-effective opportunity of obtain- ing an overview of the current situation of risk management in SMEs. Since SMEs have a very… …between the components of a holistic risk management and for an inves- tigation of the differences in the patterns of decision-making on the part of the… …divided into the following main topics: management be- haviour, business planning, Balanced Scorecard and similar instruments, risk management and project… …risk management. This thesis will specifically investigate the following research questions: Risk Management 1. What are the likely key factors… …influenced risk management practices in the main industries of German SMEs? 2. What are the methods and techniques used in the various steps of the risk…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Risk Management Practices of SMEs

  Conclusion

  Thomas Henschel

  …essential findings of this study. Section 8.1.2 delivers an overview of the scoring approach being developed and the typol- ogy for risk management practices… …derived from it. 8.1.1 Questionnaire and Interview Results The main purpose of this thesis was to investigate the current state of risk management… …practices in the main industries of German SMEs. It explored which factors must be viewed as critical for establishing a risk management system and which… …management systems. With increasing size risk management is carried out more systematically, with the responsibilities being delegated to more person- nel… …, information technology or auditing have already made stronger efforts on risk management. In contrast to that, the sectors construction and trade are rather… …lagging. Another factor for judging risk management is the personality of the owner or the managing director. Here the educational background and the… …interest in business management topics play an important role, with owner-managers showing more deficits than other managers. The interviews have revealed… …that some owner-managers have quite a fatalistic attitude toward risk management. A danger that must not be underestimated emerges from the fact that… …management. The research inter- views have revealed the deficits still more clearly. Within all size classes, the firms are unable to determine the company’s… …how risk management is linked with it. The investigation has impressively shown that firms having a good business planning also apply it for a…

  Alle Treffer im Inhalt anzeigen