Use of the cost-benefit analysis method in the risk management process of SMEs

Abstract

Research background: Property protection is a worldwide very often used term in the conditions of various sectors. It represents a set of measures that have a preventive effect on the risk of damage to the building. The issue of property protection does not only concern organizations, but also every person who is the owner of a property in which his important interests are located. The protection of buildings is a current topic on a global scale, mainly to ensure the proper functioning through the protection of all important tangible and intangible assets of company. Purpose of the article: The main idea of this article is to approach the issue and create a risk management process, focusing on dealing with risks in the conditions of a particular company, in this step we will use a cost-benefit analysis to help decide on the implementation or rejection of a project to protect the selected object. Methods: Before applying the method of cost-benefit analysis to a specific case of protection of the object of the selected company, it was necessary to characterize the selected company and find out which risks are unacceptable through the creation of a risk management process. The risk management process was created based on structured and unstructured interviews with the company’s employees. Findings & Value added: The proposed procedure for risk management and application of the method of cost-benefit analysis in the process of risk management are applicable in the conditions of any other organization in order to create an effective project for the protection of the object. If necessary, the procedure for using the cost-benefit analysis method can be adjusted to suit the needs and conditions of the problem of a particular organization.