IndexIntroductionMethodologySmall and medium-sized enterprisesRisk managementRequirements of risk management in SMEsRisk conceptsRisk in SMEsManagement and team knowledgeCostsTechnologyCustomerIncreasing interestRisk managementRisk identificationRisk assessment and analysis riskRisk control and monitoringConclusionIn a rapidly changing world, management of risk must be carried out efficiently and quickly. Risk management involves analyzing, understanding and managing risk so that companies can achieve their objectives and goals. Risk management processes must be intended to minimize and reduce risk. The aim of this article is to provide a systematic literature review of previous evidence on risk management in SMEs. The results gathered from the research showed that the risk can be divided into two groups which can then be managed with the plan. This is the first document that has critically analyzed risk management in small and medium-sized enterprises. Furthermore, the implications faced were due to the lack of information on the methodologies used by small businesses. Furthermore, further studies are needed to compare different techniques used to manage risk and the effect on the organization. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Keywords: business, management, project, risk, small and medium-sized business Introduction Risk management is a key aspect of a business or enterprise, due to the fact that risk management will allow you to perform certain actions when the risk is present. Risk management includes 5 processes which are considered to be risk identification, risk analysis, risk assessment, risk treatment and finally risk monitoring and review. The purpose of this review is to carry out a research study that will help small and medium-sized businesses regarding risk management and planning. The literature process will proceed by describing the problem and purpose behind the research carried out. Continuing, the methodology adopted will be explained with a clear analytical structure used to carry out some aspects of the review. The data collection and research will be applied to the literature review that will conclude the main body of the article. A discussion of the findings will be provided and finally a conclusion and summary of key areas will be drawn. Methodology The procedure on which the methodology was carried out consists of risk causation, risk management, risk overcoming and techniques that can be used to minimize and reduce risks in a small and medium enterprise (SME). In order to carry out the research a literature review was carried out using the University of Wolverhampton website (Library Search) to gather sources of information such as; Books, magazines and articles related to risk. The aim and objective of this document is to be able to analyze and reduce potential risks in small and medium-sized enterprises.Small and medium-sized enterprisesSmall and medium-sized enterprises (SMEs) are made up of independent businesses that employ fewer than the expected number of employees. In different countries, this number varies, since in the European Union there is a frequent limit of an SME which is 250 employees. On the other hand, some countries have set limits at 200 employees, while the United States requires SME businesses to have fewer than 500 employees. Risk Management The main feature of theRisk management is that it focuses on the identification and assessment of risk by managing those risks in order to have a reduced impact on the project. However, there are no projects that are risk-free, as there are countless of them that can have a negative impact on the project. Many studies on risk management have been conducted by Tzvi Raz, Aaron J. Shenhar and Dov Dvir, (2002) in various industrial sectors. Findings collected regarding risk management practices include: Risk management is not used in various projects. The projects that were most likely to have a risk management plan were those perceived as high risk. The use of risk management has aided in the completion of many successful projects A risk management approach has improved project schedules, costs, and objectives which have affected the quality of the project. Adequate time spent on risk management increases the likelihood of a successful project. Grant et al state that risk management is used to assist project managers anticipate delays that cause delays in project delivery. Risk management is carried out to define various objectives, improve project control, increase the chances of a successful project and improve communication between project participants. Risk Management Requirements in SMEsAccording to Steve Giles, small and medium-sized enterprises (SMEs) are impervious to updated approaches. However, some companies will consider methods of loss prevention measures, while many will not proceed with a formal risk management process. Many organizations tend to interpret it as an unnecessary task that costs time and money without adding value. Furthermore, the failure to proceed with risk management techniques can make SMEs vulnerable on some occasions. A recent study indicates that 50% of SMEs close before completing their fifth year due to unprecedented periods of uncertainty. Using risk management allows you to make better decisions and helps prevent losses. Risk Concepts Kerzner describes risk as the lack of knowledge about future events. This definition can be applied to derive characteristics common to all risks with an uncertain outcome. However, the comparison of interpretations of the definition can be divided into two simple groups. The first group of definitions attributes to the negative side of risk when it is considered a threat. Accordingly, Vochozka and Mula recognize risk as the fear of potential tangible and intangible effects on the environment resulting from achieving goals. According to Fort and Hnilica they interpret any negative deviations from the set objectives as risk. Similarly, Smejkal and Rais understand risk as the situation in which an unfavorable deviation from desired outcomes results. The second group consists of risks that focus on potential opportunities. This can be used as a guide to make improvements by ticking off or reducing certain risk factors. As stated previously, the most successful projects consist of implementing a structured risk management process. However, taking risks as opportunities will help to have a positive impact on the project. Risks in SME Management and Team Knowledge Referring to Gilmore et al., the authors conducted 40 interviews and it is implied that most companies are exposed to knowledge loss when qualified employees with high-level intelligence and knowledge leave the company. Therefore, it is concluded that it is a high risk for SMEs due to thefact that, based on long-term staff and skilled personnel, many of them will not share the same level of knowledge. Gao et al. found that case study findings imply that risk management knowledge may be mostly informal in SMEs, thus making it more difficult to create risk management dimensions regarding SME team members. Cost According to Moore et al. a large number of SMEs are looking for ways in which costs can be reduced regarding materials. The authors provided evidence of the volatility of commodity prices in recent years. Furthermore, there is an increase in the competitive market and an increase in raw material prices. Moore et al. discussed the fact that several large companies have invested in advanced technologies and therefore can easily understand the fact that when prices increase, they can move to cheaper resources. On the other hand, many small and medium-sized businesses are unable to sustain these types of investments and are therefore exposed to cost risk. Technology Research work involving 15 qualitative interviews and a survey based on 125 small and medium-sized businesses in the UK showed that online security was considered the highest risk. Sukumar et al. The risks mainly consist of online problems that include cyber attacks, false identities and credit card fraud. Technological risk refers to the installation of IT systems and the type of security applied to them. Poba-Nzaou et al. demonstrated that software can pose a large risk to SMEs because installing software requires more resources than in larger organizations.CustomerWith regards to customer risk, managers of small and medium-sized businesses interviewed in the study by Sukumar et al. justified that consumer trust is one of the most important risks for a business located online. The authors' argument states that it is very difficult for managers to regain trust due to the fact that it is a company of limited size and the number of transactions. It was implied that many gaps in online security could have a huge impact on customer trust and the organization's reputation. This concludes the reason behind customer risk being complicated to reconstruct after a security incident occurs. Increased interestAltman et al., studies state that on some occasions SMEs are dependent on external financing, this involves borrowing to account for a source of finance. However, the risk here is rising interest rates. As for banks, Mutezo says SMEs may perhaps be able to reduce banks' fears by paying attention to information and asymmetries. Understanding the thinking of SMEs, Bruns and Fletcher conducted a study that showed that SMEs with a weak financial situation but with a high probability of risk were mostly rejected compared to companies with a strong position. Furthermore, Bruns and Fletcher believe that the possibility of having a stronger position in financial terms can possibly counteract the high risk. They also found that SMEs that had low collateral were less likely to get a loan despite having the responsibility to take on risk, while organizations that had high collateral were more likely to get loan approval despite having a low level of risk. of riskThe first step in risk management is to carry out a continuous and systematically structured process that will facilitate the process of.