scholarly journals Financial Risk Management in SMEs: A New Conceptual Framework

2020 ◽  
Vol 13 (10) ◽  
pp. 85
Author(s):  
René-Pascal van den Boom
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Principal Component ◽  
Two Dimensions ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework ◽  
Risk Manager ◽  
Risk Management Process ◽  
Comprehensive Framework

During the past decades, several risk management models have been developed and implemented. Merely, suitable for large firms. Nowadays, there is still a lack of a comprehensive framework for small and medium-sized enterprises (SMEs). This paper proposes a new conceptual Financial Risk Management framework for SMEs. The framework consists of two dimensions: Risk Management Process and Organizational Structure. Both dimensions contain several components, each component includes one or more items. To calculate scores on different levels Principal Component Analysis (PCA) is used to calculate weighting factors. We add a disparity factor to adjust the final score for an imbalance between dimensions. The educational level of the risk manager is tested positively as a determinant for FRM as well as for the two dimensions. The proposed framework may help individual SMEs evaluate and approve its financial risk management. 

Financial Risk Management

2016 ◽  
pp. 301-311
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

Financial Risk Management

2018 ◽  
pp. 162-173
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

Financial Risk Management

2018 ◽  
pp. 97-108
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

Risk Management Framework That Meets the Implementation Challenges in IT-Centric Micro and Small Companies

2013 ◽  
Vol 4 (2) ◽  
pp. 16-26 ◽  
Author(s):  
Jasmina Trajkovski ◽  
Ljupcho Antovski
Keyword(s):  
Risk Management ◽  
Management Approach ◽  
Small Companies ◽  
Management Framework ◽  
East Europe ◽  
Implementation Challenges ◽  
South East Europe ◽  
Risk Management Framework ◽  
Management Concepts ◽  
Comprehensive Framework

This paper presents an overview of the proposed risk management framework and how it is designed to meet the challenges usually faced by IT-centric micro and small companies when implementing risk management. The issues and challenges identified for the IT-centric micro and small companies are centered around the exposure to various risks and necessity to have a risk management approach which covers these various risks, as well as to limited resources for risk management and necessity for usable and comprehensive framework. The new framework is based on the analysis of the best practices in risk management concepts as well as direct experience from dealing with over 20 companies in South-east Europe. The segments covered by the framework include people, policy, methodology and process, and tools.

scholarly journals Financial Risk Management

2017 ◽  
Vol 22 (4) ◽  
pp. 276-280
Author(s):  
Soňa Jirásková
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Risk ◽  
Slovak Republic ◽  
Management Process ◽  
Negative Consequences ◽  
Financial Risk Management ◽  
Risk Management Process

Abstract This paper analyses financial risk management at the Ministry of Defence of the Slovak Republic. In its first part, the author defines the basic terms related to risk management, explains the negative consequences of risks and points to the importance of financial risk management. The second part of the paper is concerned with the risk management process at the Ministry of Defence of the Slovak Republic relating to financial management.

scholarly journals Development of methodological approaches to establishing an integrated risk management framework for leasing transactions in Ukraine

2017 ◽  
pp. 49-63
Author(s):  
Anzhela Kuznietsova ◽  
Oleksandr Levchenko
Keyword(s):  
Risk Management ◽  
Product Life Cycle ◽  
Risk Mitigation ◽  
Management Framework ◽  
Risk Management Framework ◽  
Integrated Risk ◽  
Credit Mechanism ◽  
Risk Management Process ◽  
Low Efficiency ◽  
Integrated Risk Management

Based on studies of domestic and foreign researchers, the article gives a modified and extended classification of risks related to leasing transactions which includes a new classify cation attribute ‘by types of leasing activities’ (in terms of risk management). Risk mitigation techniques for leasing transactions are described in detail, as well as their essence, ways of introducing and expected outcomes. The advantages of securitization are summarized and key reasons for low efficiency of this method in the domestic leasing market are identified. For these reasons, the domestic stock market is less developed and Ukraine’s current legislation on leasing is imperfect. It is pointed out that success in development of Ukraine’s financial market relies on the growth of leasing along with the efficiency of financial and credit mechanism that supports leasing transactions and determines the quality of risk management framework as an integral part of such a mechanism. The process of risk management for leasing transactions is formalized. A comparative analysis of fragmentary and complex approaches applied in Ukraine towards establishing a risk management framework for leasing companies is undertaken. The paper justifies the necessity of establishing an integrated risk management framework for leasing transactions as part of financial and credit mechanism that supports leasing transactions. The need for establishing such a framework is driven by the following market trends: globalization; increased competition; company consolidation; product standardization; product life cycle decrease; technological innovation; increased attention to risks given by the state, society, stockholders and board of directors. It is stated that establishing an integrated risk management framework for leasing transactions involves the following progressive steps: setting goals and targets, identifying and evaluating risks, planning for potential risks, monitoring risks and introducing risk management process. The article highlights the main goal of an integrated risk management framework for leasing transactions, long-term tasks for achieving this goal, major function that the framework should perform and principles that it should preserve.

scholarly journals Intelligent Risk Management framework

2019 ◽  
Vol 8 (3) ◽  
pp. 278
Author(s):  
Wissam ABBASS ◽  
Zineb BAKRAOUY ◽  
Amine BAINA ◽  
Mostafa BELLAFKIH
Keyword(s):  
Risk Management ◽  
Dynamic Structure ◽  
Large Set ◽  
Key Factors ◽  
Iot Security ◽  
Management Framework ◽  
Risk Management Framework ◽  
Risk Management Process ◽  
Iot Devices ◽  
Area Monitoring

The Internet of Things(IoT) is rapidly increasing and enhancing today’s world by introducing a large set of interconnected devices. Several beneficial services are produced by these devices as for area monitoring and process control. However, IoT security is still a major problem. In fact, IoT’ security beggings largely whith an effective Risk Management process. However, the essense of this process is to acquire a risk inventory cibling the IoT devices. Nevertheless, it is quite difficult to obtaining this latter which significantly adds complication issues to the Risk Management.Without the ability of holisticly identify the IoT critical devices, inaccurate Risk Management is achieved which leads unfortunately to novel risk exposures. Traditional Risk-based approaches fails drastically at apprending IoT’ potential attacks. The dynamic structure, the heteregouns nature of devices, the various security objectives and infrastructure pervasiveness are key factors impacting the overall perfomance. Thus, a holistic Risk Management witihin the IoT is indispensable. Accordingly, we propose an intelligent Risk Management framework using Mobile Agents in order to deliver preventive and responsive assessment.

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