Dr Lionel Boxer CD June 2006

1
Dr Lionel Boxer CD lionel.boxer_at_rmit.edu.au Centre
for Management Quality Research Royal Melbourne
Institute of Technology
2

• Challenge of managing risk in a rapid growth
  small and medium enterprise (RG-SME).

3
Risk is the possibility of something happening
that impacts on your objectives. AS/NZ4360
2004
4

• Background to this paper
• risk management since 80s
• literature review
• SME observation
• anecdotal reflection

5

• Risks Taking by a RGSME
• Avoid Financial Risk
• Accept Strategic Risk
• Accept Operational Risk
• Avoid Social Risk
• Limit of Aggregate Risks

6
Case for Risk Management
P P P P P P
Shell be Right Mate
Continuum
7
(No Transcript)
8

• Ph I Prepare
• Define the context in which risks will be
  managed. That is, what activities go on in the
  RG-SME in which risk is being managed.

9

• Ph II Understand
• Understanding risks involves three distinct
  steps
• identification,
• analysis and
• evaluation .

10

• Ph III Treatment
• Determine appropriate treatment by
• preventing situations from occurring
• correcting situations that have occurred

11
(No Transcript)
12
Summary

• Continuum between superior planning and poor
  planning along which any enterprise sits.
• Complexities inherent in managing the operation
  of a RG-SME require superior planning.
• With a clear risk management framework,
  communication about risk becomes more natural and
  the true nature of risks becomes clearer.
• With managed risk, boosted confidence enables
  entrepreneurs engaging in RG-SME to be more
  likely to entertain a broader range and quantity
  of risks.

13
Dr Lionel Boxer CD lionel.boxer_at_rmit.edu.au Centre
for Management Quality Research Royal Melbourne
Institute of Technology