Integrating risk management into strategic planning in SMEs

Current trends in risk management emphasize approaches where all risks related to the business operations are viewed as one entity and the couplings between different risks are understood. Small and medium-sized enterprises (SMEs) would benefit from approaches that would integrate risk management into other management processes e.g. strategic planning, quality or operational management. This paper presents the findings from a literature review and the results of studying the risk management process at five Finnish SMEs. The paper discusses the main motivating factors and management objectives for risk management in SMEs. Conclusions on how risk management should be integrated into the management and leadership of SMEs are drawn.