An Assessment of Risk Management Practices in Smes in Zimbabwe: A Review and Synthesis

Abstract

This study used exploratory and descriptive survey research design to assess the level of risk management by SMEs in Zimbabwe with particular emphasis on the knowledge possessed by SMEs Owners/managers and the insurance cover undertaken by their business with a view to reducing their risk. The study used a sample of 380 SMEs operating in different lines of business. Both open ended and closed questionnaires were distributed to owners of the SMEs selected for the study and the data collected were analysed using descriptive statistics .The findings reveal that 90% of SMEs have a poor knowledge of the concept of risk and consequently do not have insurance cover .The majority of SMEs did not have risk management strategies in place to address risk management issues.