Practical Risk Management Approaches among Small and Medium Enterprises

Abstract

The focus on economic diversification has led to increased support for the establishment and development of SMEs by Omani government in order to contribute in GDP. Risk management has become a major challenge for SMEs in the country due to the lack of experience and knowledge. This research focuses on 'Risk Practical Management Strategies' adopted by SMEs to manage risk. The research is accomplished through a qualitative approach, gathered primary data through interviews and analyzed thematically to establish the trends and patterns in the data. The findings show that there is substantial awareness of the importance of risk management specially in financial and operational which are the key risks faced by businesses, coupled with reputational risk that is associated with the increased use of ecommerce. The RPMS are largely linked to training and developing awareness about risk among SMEs.