Risk Management of Small and Medium Enterprises: A Case Study of the Service Sector in Bangkok and Metropolitan Areas to Achieve Organizational Sustainability
Keywords:
Risk Management, Small and Medium Enterprises, Organizational SustainabilityAbstract
This research aims to (1) study the relationship between the opportunity and severity of business risks in small and medium enterprises (SMEs) with risk management and the effectiveness of risk management, and (2) propose guidelines for developing effective risk management for SMEs to ensure organizational sustainability. This study is a quantitative analysis using a questionnaire as a research tool. The sample population consists of 367 entrepreneurs in the service sector, selected using a purposive sampling method. The data were analyzed using inferential statistics, path analysis, and structural equation modeling (SEM). The research findings indicate that the model showing the relationship between the opportunities and severity of business risks in SMEs with risk management and the effectiveness of risk management, using path analysis, reveals overall statistically significant results. The values of CFI, GFI, and NFI from the tests were all close to 1, and the p-value was less than 0.05. The study also found that risk management directly influences the effectiveness of risk management, with a correlation value of 0.77. Key factors influencing risk management were Review and Revision and following by Information Communication and Reporting, Performance Goals, Strategy and Objective Setting respectively. The factor with the least impact on risk management was Governance and Culture.
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