Risk Tolerance And Risk Management In Everyday Life Of SMEs

Ioannis (John) Kouraklis

Research output: Chapter in Book/Report/Conference proceedingConference contribution


During the last decade, changes have been realized in world system regarding many individual sectors: in economy, in politics, in the social behavior introducing questions that directly face the basic components of the international balancing forces in the corporate and entrepreneurial environment. The pressure extends from nations to states, from small companies to huge multinational enterprises, from taxation to salary systems. These are elements constructing a framework identifying the modern version of the globalization and the results affect the most significant level of the supporting system in economical societies: the small and medium size enterprises (SME).

SME are called to survive in an environment where the uncertainty created by the new arrangements in modern world system has an instant and significant distribution of the risk, knowing, at most of the cases, no country limits, no physical frontiers, no national laws or restrictions, and, on the other hand, this chaotic property creates new challenges, new potential opportunities and a new and innovating way of thinking. In this paper, we focus on the changes at the characteristics and the meaning of the risk and we outline the demand produced against the perception and the utilization of the risk, the basis of risk management, from the point of view of the owner, the director, the strategic designer of an SME.
Original languageEnglish
Title of host publicationProceedings of Small And Medium Enterprises In European Economies, International Conference, Babes-Bolyai University, Cluj-Napoca, Romania
Publication statusPublished - 2005

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