Skip to main content

Research Repository

Advanced Search

Contemporary Financial Risk Management Perceptions and Practices of Small-Sized Chinese Businesses

Gao, Simon S; Oreal, Serge; Zhang, Jane

Authors

Serge Oreal

Jane Zhang



Abstract

This study investigated the current perceptions and practices of financial risk management at small businesses in China. The researchers took an interpretative approach, using interviews within a case study, to collect qualitative data from Chinese business owners. Despite the well-documented importance of financial risk management in light of the 2008 global financial crises, surprisingly, the data indicated that little progress has been made on implementing an effective financial risk management in many Chinese small businesses. Analysis indicated the core problems in the case study organization stemmed from a lack of expertise, along with insufficient operational resources, for applying risk management. Interestingly, the researchers also found that Chinese small business managers perceived financial risks differently from managers of large organizations in China. Specifically, small business owners preferred to utilize risk transfer and insurance cover to hedge against financial risk.

Journal Article Type Article
Publication Date 2014
Deposit Date Oct 6, 2014
Journal International Journal of Risk and Contingency Management
Print ISSN 2160-9624
Peer Reviewed Peer Reviewed
Volume 3
Issue 2
Pages 31-42
DOI https://doi.org/10.4018/ijrcm.2014040103
Keywords Financial risk management; small businesses; China;
Public URL http://researchrepository.napier.ac.uk/id/eprint/7236
Publisher URL http://dx.doi.org/10.4018/ijrcm.2014040103