Going Beyond Formalization: Effective Risk Management in a Medium Company

Abstract

The present paper presents an interpretive case study on the topic of risk management in SMEs. The research identifies an Italian medium-sized company, a family business established in the 1940s, which represents the integrated and holistic approach in managing risks is put into practice. This paper underlines that in a medium enterprise it is not necessary to formalize the risk management process with written procedures. However, the management should hold all the information flow and be able to manage all the events in a holistic way. This paper represents the second step of a huge research project with the aim to understand whether it is possible to validate a conceptual model that considers a risk approach focusing on decision-making, SME entrepreneurship and corporate culture.