Question

discuss how risk management in small firms is different from large firms

Answer 1

Risk management is process of identifying , forecasting and controlling the threats poses to business. Risk management is vital part of organization.Every organization must developed risk management framework in order to mitigate the impact of risk on the business.

Every firm requires strong risk management strategy .Risk management framework/Process varies according to the size of organization. Small firms requires stronger risk management system . Due to limitation in size and capabilities , small firm are more vulnerable to extra risk such as financial risk in terms of leverage , cash flow , cost cutting , political risk which is difficult to cope up for small firm due to competition from large firm and huge market share.