Using of risk management at small and medium-sized companies in the Slovak Republic

Economic Annals-ХХI: Volume 156, Issue 1-2, Pages: 71-73

Citation information:
Sira, E., Kravcakova Vozarova, I., & Radvanska, K. (2016). Using of risk management at small and medium-sized companies in the Slovak Republic. Economic Annals-XXI, 156(1-2), 71-73. doi: https://doi.org/10.21003/ea.V156-0016

Elena Sira
PhD. (Management),
Senior Lecturer,
University of Presov
16 Konstantinova Str., 08001 Presov, Slovak Republic
elena.sira@unipo.sk
elena.sira1@gmail.com

Ivana Kravcakova Vozarova
PhD Student,
University of Presov
16 Konstantinova Str., 08001 Presov, Slovak Republic
ivana.vozarova@smail.unipo.sk

Katarina Radvanska
Lecturer,
International School of Management ISM Slovakia
1 Duchnovicovo namestie Str., 08001 Presov, Slovak Republic
radvanska@ismpo.sk

Using of risk management at small and medium-sized companies in the Slovak Republic

Abstract. The aim of the article is to identify whether the risk management is implemented in the practice of small and medium-sized companies (SMEs) in Slovakia, and whether financial factors are the most important sources of the risk occurrence. We analysed risk management at small and medium-sized companies in the Slovak Republic in February-March, 2015 on a sample of 80 firms. The risk management is very important for these companies as its knowledge can help companies to perform their business successfully. Our important finding from the survey was that 40% of small businesses have a system of risk management. Hypothesis 1 foreseeing that at least 40% of risks at small and medium-sized enterprises are caused by difficult access to financial resources can be rejected. Нypothesis 2 assuming that the risk assessment as a way of risk management dominates in more than 50% of small enterprises in Slovakia can be rejected, too. It is concluded that introduction of wider usage of risk management at SMEs will dicrease business failure and support better management practices.

Keywords: Risk; Risk Management; Small and Medium-sized Companies

JEL Classification: D20; M19

DOI: https://doi.org/10.21003/ea.V156-0016

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Received 2.06.2015