Risk Management Level Determinants in Visegrad Countries – Sectoral Analysis

Abstract

Increasing competition has emphasized the need for creating and using more effective strategies at the level of SMEs to achieve competitive advantage. SMEs face higher risks in terms of the globalization due to the limited resources as well as size. The objective of the study was to examine the determinants of risk management with an emphasis on the sector specifics of SMEs in the V4 countries. This enables the quantification of sectoral differences in relation to the socioeconomic determinants. The research sample included 1585 SMEs from the V4 countries. The data obtained from SME managers and owners were processed using the descriptive statistics and logistic regression. The results of the analyses confirm the existence of differences across SMEs concerning the risk management, which are determined by the country in which a given company operates, industry, gender and age of its manager or the owner of the company. The results of the study provide a valuable platform for the development of systems to measure and assess business risks in companies and to set up training systems. It will also enhance the development of international and national benchmarking indicators and the creation of international databases for comparative analyses.

The Relationship between Respondents’ Characteristics and Their Perceptions of Enterprise Risk Management. Results of a Survey

“…The adoption and implementation of ERM practices has attracted considerable research attention with scholars seeking to unravel the complexities of why some organizations embrace ERM while others do not. Previous studies show that successful ERM adoption and implementation depends on several factors, such as the presence or absence of a strong risk culture in the company (Ching et al, 2020;Ingram, Underwood & Thompson, 2014;Kanu, 2020), the support and cooperation of top management (Miloš Sprčić, Kožul & Pecina, 2017;Sax & Torp, 2015), as well as technical factors, and a limited understanding of ERM frameworks which is often related to the voluntary and unregulated nature of risk management practices in context small and medium-sized enterprises, (Belas et al, 2023;Ferreira de Araújo Lima, Crema & Verbano, 2020;Henschel, 2010). Although effective ERM implementation has several prerequisites, ERM positively influences firm performance.…”

“…Such nuanced knowledge is crucial for practitioners, policymakers, and researchers alike, as they navigate the evolving landscape of risk management in today's dynamic business environment. Despite extensive research conducted within this domain, few studies address the determinants of ERM implementation (Belas et al, 2023;Henschel & Durst, 2016;Falkner & Hiebl, 2015;Beasley et al, 2005).…”

“…An additional strand of literature has concentrated on examining the effects of socio-demographic characteristics on ERM. The study by Belas et al (2023) delved into specific contextual factors influencing risk management practices in SMEs within Visegrad countries and found that gender dynamics play a significant role in ERM implementation. Women were more likely to implement moderately effective risk management practices when compared to men.…”

Effect of CSR Implementation and Crisis Events in Business on the Financial Management of Smes

“…The respondent had to answer all the questions in the questionnaire. A Likert scale (5-point scale; e. g. Belas et al, 2023) was applied to determine the respondent's attitudes towards the selected statements (1 -strongly agree, ..., 5 -strongly disagree). Questionnaire structure: demographic questions on the enterprise; demographic questions on the respondent; respondent's attitudes on the defined statements.…”

Innovation of the production process of engineering companies in relation to business portfolio

“…The very activation of innovation processes in companies largely depends on the ability of the companies to develop their intellectual potential (Kasych et al, 2021;Komang et al, 2022;Belas et al 2023). The authors state that, paradoxically, this intellectual capital is not sufficiently appreciated by companies.…”