RISK MANAGEMENT

Risk Management Policies in UK—

Small and Medium Business Enterprises

Research Questions and Issues

Risks are a part of every business and every business must be able to cope up with the associated risks. In this regard, Small and Medium-sized enterprises in the United Kingdom, there are considerable number of risks which can be hazardous for small businesses if they are not paid attention to. Therefore, it is of immense importance to develop strategies to manage the potential risks so that any untoward situation can be dealt with smoothly without any hassles. (Meyer & Redd 2004, 43-49).

There has been a shortage of research on the present situation of risk management in SMEs across UK. Thus, there was a need for research to be carried out on the said topic to address the issue of risk management. Therefore, I have proposed to carry out a broad empirical research to delve into the present condition of risk management practices in SMEs across UK.

The research has the following questions:

What are the variables that significantly affect the perception of the consumers regarding satisfaction?

How grave is the risk pertaining to the incapacity for SMEs to go for technological advancement?

How do SMEs handle the risk of tough competition and inadequate margin?

The data to be collected

For this research, the data is collected concerning to the existing literature on the said topic in order to grasp the issue in a better way. However, I have found out that there is an acute dearth of research on issue of risk management in small and medium-sized enterprises in the UK; therefore, an in-depth analysis into the concepts pertaining to risk management in UK SMEs was necessary. By methodically researching risk management in SMEs across UK, a more clear-cut inclusion of the organizational components has been evaluated that influence the exercises concerning to risk management in SMEs. Moreover, I also attempted to cover the affect of environmental equivocalness on attempts applied on handling risks in SMEs. Once the risks have been identified and assessed, the question is how to manage them, that is to decide whether a firm wants to do something about the risks that it can act upon. If so, the firm has to incorporate into their action plan and the activities to be undertaken.  In all cases, it is a must for a firm to start with the most serious risks. There are six categories to measure the risks that a firm can take:

Acceptance - No action: the risk is accepted (the impact is low).

Prevention - Measures to be taken that can prevent the risks (making them less likely)

Reduction - Measures to be taken that can reduce the impact of risks.

Transfer - Measures to be designed to transfer responsibility for the risk on some other entity (for example with an insurance policy)

Contingency plan - or "Plan B": Preparing for an emergency plan to cope with risks which you can do nothing by changing your project if these risks appear.

Monitoring and Evaluation - For ongoing project, tracking the actions which the firm has ...