The Role of Enterprise Risk Management on SMEs Performance: A Review Paper

  • Siti Nadhirah Mohamad Fauzi Faculty of Business and Management, 21300 Universiti Sultan Zainal Abidin, Kuala Nerus, Terengganu, Malaysia
  • Puspa Liza Ghazali Faculty of Business and Management, 21300 Universiti Sultan Zainal Abidin, Kuala Nerus, Terengganu, Malaysia
  • Nik Hazimi Mohammed Foziah Faculty of Business and Management, 21300 Universiti Sultan Zainal Abidin, Kuala Nerus, Terengganu, Malaysia
  • Mohd Sadad Mahmud Faculty of Business and Management, 21300 Universiti Sultan Zainal Abidin, Kuala Nerus, Terengganu, Malaysia
  • Norhilmi Muhammad School of Core Centre, Universiti Sultan Zainal Abidin, 21300 Kuala Nerus, Terengganu, Malaysia
  • Rabiatul Adawiyah Abdul Rohim Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan, Malaysia
Keywords: Enterprise Risk Management, Risk Management, Risk Management Index, Small and Medium Enterprises (SMEs)


SMEs have proved their ability to contribute to economic growth and become Malaysia's most prominent business economy. As a result, many Malaysians, particularly the younger generation, are involved in this field because they believe that entrepreneurship will help them improve their living standards and income level. Furthermore, government support is one of the reasons why young Malaysians want to be entrepreneurs. However, many Malaysian entrepreneurs have struggled to survive in the first five years of business operation due to the risks and challenges. As a result, using comprehensive literature review, this paper aim to review some of the previous papers on the importance of risk management in SMEs and find gaps from these papers. This review paper can help grasp new research opportunities that can be conducted in the future. Thus, this paper suggested implementing an enterprise risk management index to help entrepreneurs measure their readiness before entering the entrepreneur field. 


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How to Cite
Mohamad Fauzi, S. N., Ghazali, P. L., Mohammed Foziah, N. H., Mahmud, M. S., Muhammad, N., & Abdul Rohim, R. A. (2022). The Role of Enterprise Risk Management on SMEs Performance: A Review Paper. The Journal of Management Theory and Practice (JMTP), 3(1), 73-77.
Finance & Economics

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