Abstract
Businesses of all sizes, types, and structure face a multitude of risks. This paper focuses on small businesses and their approach to risk management and provides an argument for the adoption of an enterprise risk management program. An assessment instrument was administered to over 200 small businesses through a detailed interview process to determine understanding and approaches to risk management. Little evidence was found to indicate that small business owners fully utilize and reap the benefits of risk management. Additionally, it appears small business owners do not seek out information related to risk management other than through the insurance agents they use to meet their personal insurance needs. The authors advocate for an enterprise risk management approach to get business buy-in to the risk management process and optimize risk-taking resulting not only in fewer business failures but also more successful businesses.
Recommended Citation
Berry, Christine T. and Berry, Ronald L.
(2018)
"An Assessment of Small Business Use of Risk Management: An Argument for the Adoption of an Enterprise Risk Management Approach,"
Journal of Business, Industry, and Economics: Vol. 23, Article 5.
Available at:
https://roar.una.edu/jobie/vol23/iss1/5