Risk Management Research Proposal
Risk Management Aspects
Risk management is a task similar to the other management functions such as marketing, purchasing or finance. Thus, if we look at economic development from a functional viewpoint risk management is somewhat every countries do which directs to the realisation of its overall economic objectives. The scenery of risk management shall be scrutinized first pursued by an argument on the dissertation proposal which focuses on Small and Medium Enterprises in UK.
This research proposal discusses in detail the background, general purpose of the study. Moreover, the objectives of the study and the research statements are presented. Here, vital concepts, questions and assumptions are stated. Finally, the scope and limitation of the study, overview of the methodology used and the significance of the research are discussed.
Overview of Risk Management
Risk management started out as an indemnity management purpose. The cost of indemnity had restricted management's alternatives in dealing with the hazards faced by the organisation. One of the foremost problems was that insurers rated firms according to business in such a way that a fine run firm that had few losses were required to pay for the claims of poorly run firms within the same industry. With this, the role of risk management appeared. Management began to make out that abridged losses intended reduced cost of risk. If risk managers reduced losses they could hold them themselves without resorting to indemnity. However, it took some time for industries to settle in risk management.
The delicate inquisitiveness in risk management is the result of a number of instantaneous drifts. Globalisation of trade and production has augmented financial and direct investment in unstable up-and-coming markets. Risk management has also ensnared consideration as a result of the recurring and well-publicised breakdowns linked with its execution. Regardless of the amplified academic and specialized concentration paid to risk management, common instances still occur when classy investors or firms experience abrupt, unexpected, and devastating losses.
To an economist, risk is described as the survival of ambiguity about potential upshots. Risk is a mean reason in economic existence for the reason that individuals and firms create immutable reserves in research and product improvement, inventory, plant and equipment and human capital, without knowing whether the potential cash flows from these funds will be adequate to pay off both debt and equity holders. If such genuine investments do not engender their necessary returns, then the financial claims on these returns will turn down in worth.
In addition to altering the extent of equity and debt in their capital composition, firms/business organisations can also influence their chance of liquidation by extenuating the risk disclosures they countenance. Firms/Business organisations come out to prefer between the types and degrees of disclosures, assuming those that they consider have an aggressive gain in supervision and laying others off into the capital markets (Stulz 1996). Other features of the firm's processes such as the convexity of its tax lists, can also influence the amount to which administrators challenge to alleviate risks (Tufano 1996). Apparently, Besanko, Dranove and Shanley, (1996) believes that economists and strategic planners view risk management as being related to the issue of the boundaries of the firm. In this structure, the pronouncement to alleviate meticulous risks is comparable to the verdict to outsource a particular purpose. Thus, risk management, like technology, allocation, or level, is a basis of economical plus.
Purpose of the Study
This research proposal seeks to examine and weigh the advantages and disadvantages of risk management in Small and Medium Enterprises in UK. Moreover, a comparison with organisations risk management practices will be undertaken. This is necessary to come up with a strong conclusion and the creation of "best of two worlds" recommendation.
Statement of the Problem
As competent reflective agents, we are aware of the many ways in which a generalised 'climate of risk' presses in on our daily activities; sensitive to the risks that affect our lives; and are specialists in managing risk. From health concerns to stock market gains and environmental and political issues, the contemporary risk climate is one of proliferation, multiplication, specialise, counterfactual guesswork, and anxiety (Elliott, 2002).
However, adequate consideration and calculation of risk-taking, risk-management and risk-detection can never be fully complete since there are always unforeseen and unintended aspects of risk environments. This is especially true at the level of global hasards, where the array of industrial, technological, chemical and nuclear dangers that confront us grows, and at an alarming rate. Indeed, Beck (1996), an innovative and sociologist defines the current situation as that of world risk society. According to Beck (1996), the rise of risk society is the result of the new electronic global economy. He has developed powerful analyses of the ways in which the situation is transforming social reproduction, nature and ecology, intimate relationships, politics, economics and democracy.
In addressing the need to mitigate risk and to predict future losses in the economy, United Kingdom, through business organisations, requires business administrators to provide adequate risk management. Although literature shows that this law provides numerous advantages, many authors note its weaknesses. In line with this, the dissertation will attempt to answer the following question: (1) What are the differences of Small and Medium Enterprises in UK in terms of risk management aspects?
Generally, the purpose of this study is to conduct a study on the quality of service related to Small and Medium Enterprises marketing strategies in dealing risks. This study tries to answer the following queries:
1. What are the variables that significantly affect the perception of the consumers regarding satisfaction?
2. Does appropriateness of risk management in Small and Medium Enterprises in UK significantly affects the progress of certain organisation?
3. Does consumer satisfaction contribute to the progress of Small and Medium Enterprises in UK?
4. Is there any significant relationship between risk management and organisation’s progress of Small and Medium Enterprises in UK?
Hypothesis of the Study
Based on the research questions the research project works out on the following null hypotheses:
1. Appropriateness of marketing strategy and risk management has no significant effect to the progress of Small and Medium Enterprises in UK.
2. Consumer’s perception regarding marketing strategies has no significant relationship to the progress of Small and Medium Enterprises in UK.
Significance of the Study
This study will be a significant endeavour in understanding the importance of assessing risk management in a certain organisation. This study will be helpful to business administrators and management practitioners for this will be a guide for them when they employ effective marketing approach to their organisation. By examining the risks and other factors involved in marketing strategies, business administrators and management practitioners will be able to design measures to minimise the risks. Further, through the understanding of the needs of their consumers in terms of satisfaction, this study will help different food manufacturers to satisfy their consumers. Moreover, this study will be a significant endeavour in promoting effective marketing strategies that suffice the needs of consumers.
This study is deemed useful for future researchers on marketing strategies and its application to different business organisations. This study could also serve as an academic tool in informing its reader about the business development and organisational change. Moreover, this research will provide recommendations on how to value business development as they are taking a large part in the organisations success. In addition, this study will provide information to business leaders regarding business progress and development. Knowing how consumers perceive development of an organisation will assist business leaders in establishing programs, policies, and staff development.
For this dissertation, descriptive research method will be utilised. The research described in this document is based on qualitative research methods. The qualitative research is multimethod in focus, involving an interpretative, naturalistic approach to its subject matter. For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from books and journals; and makes a content analysis of the collected documentary and verbal material. Afterwards, the researcher will summarise all the information.
From this proposal, the research paper will have five chapters. The First Chapter will present the background of the study, the objectives, research problems, methodology, the study’s scope and limitation and its significance. In Chapter 2, literatures pertaining to marketing strategies, risk management, management programs and consumer satisfaction are discussed. In Chapter 3, the methodology used for this study is discussed. In Chapter 4, the results of the conducted survey and interview are presented. And in Chapter 5, the study summarises the findings and provides conclusion and recommendations.
This research study has a broad range of topics regarding status of risk management programs in Small and Medium Enterprises in UK with respect to the perception of consumers. Although the focus is on the perception of the respondents, other considerations such as the needs of the respondents, effect of management programs on consumers, and other general information about business development are discussed. The outcome of this study is limited only to the data gathered from books and journals about marketing strategies and business development and from the primary data gathered from the result of the questionnaire survey and interview conducted by the researcher.
As the research was completed in a relatively short period of time other factors and variables are not considered. This might have an impact on the results of the study.
Beck, U. 1996. World Risk Society as Cosmopolitan Society: Ecological Questions in a Framework of Manufactured Uncertainties, Theory, Culture and Society 13(4), 1-32.
Besanko, D., Dranove, D. and Shanley, M. 1996. Economics of Strategy. New York: John Wiley & Sons.
Elliott, A. 2002. Beck's Sociology of Risk: A Critical Assessment. Sociology, 36(2), 293.
Stulz, R. 1996. Rethinking Risk Management. Journal of Applied Corporate Finance, Fall, 8-24.
Tufano, P. 1996. Who Manages Risk? An Empirical Examination of the Risk Management Practices of the Gold Mining Industry. Journal of Finance, September, 1097-1137.
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