Dutch Journal of Finance and Management

Dutch Journal of Finance and Management, 2023 - Volume 6 Issue 2, Article No: 25718
https://doi.org/10.55267/djfm/14180

Published Online: 30 Dec 2023

Views: 224 | Downloads: 126

This quantitative research study investigates the impact of risk management practices, particularly risk identification, on the financial performance and resilience of small and medium enterprises (SMEs) amid crisis situations, with a specific focus on the case of Lebanon. The research involves 283 respondents, consisting of SME owners, managers, and key decision-makers, and employs a structured questionnaire for data collection. The primary objectives of this research are to assess the extent to which SMEs in Lebanon implement risk management practices, examine the relationship between risk identification and financial performance, and determine the role of risk management in enhancing financial resilience during times of crisis. The study acknowledges the unique challenges faced by SMEs in Lebanon, given the recent economic and political crises that have significantly impacted the business environment. The research strategy includes the use of descriptive statistics, correlation analysis, multiple regression analysis, and hypothesis testing to analyze the collected data. Preliminary findings reveal the prevalence of risk management practices among Lebanese SMEs, with risk identification being a crucial component. The analysis aims to elucidate whether robust risk identification processes positively correlate with financial resilience and improved financial performance. The outcomes of this study have significant implications for SMEs in Lebanon, providing insights into the importance of effective risk management as a means to enhance financial resilience during crises. The results will assist SME owners and managers in making informed decisions regarding risk management strategies. Furthermore, policymakers and stakeholders will gain valuable insights into the role they can play in supporting SMEs in building financial resilience in challenging economic environments.

Risk Management Financial Resilience Risk Identification Financial Performance

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