Enterprise Risk Management (ERM) for the assessment of strategic risks in microenterprises in Hidalgo, Mexico

Abstract

Current business environment is dynamic and highly competitive has seen numerous debacles, which is why risk management and its various forms have come to light. Risk management may be considered from various standpoints, from the more traditional, individualistic perspectives and purely quantitative, to a more integral and qualitative focus. We proposed Enterprise Risk Management (ERM) methodology in this paper for the, evaluatation of risks faced by microenterprises, given the lack of appropriate tools for this economy sector. Results indicate that ERM is easily applied to small businesses and allows them to evaluate their risk exposure using qualitative data.