A Novel Multi-Criteria Risk Matrix to Assist in the Strategy Formulation Process: The Case of SMEs

Jean-Marc Vasnier (), Mourad Messaadia, Nicolas Maranzana () and Ameziane Aoussat
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Jean-Marc Vasnier: CESI - CESI : groupe d’Enseignement Supérieur et de Formation Professionnelle - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université
Mourad Messaadia: LINEACT - Laboratoire d'Innovation Numérique pour les Entreprises et les Apprentissages au service de la Compétitivité des Territoires - CESI - CESI : groupe d’Enseignement Supérieur et de Formation Professionnelle - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université
Nicolas Maranzana: LCPI - Laboratoire Conception de Produits et Innovation - Arts et Métiers Sciences et Technologies
Ameziane Aoussat: LCPI - Laboratoire Conception de Produits et Innovation - Arts et Métiers Sciences et Technologies

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Abstract: Small and medium-sized enterprises (SMEs) are the spine of the European economy and play a key role in adding value in all sectors of the economy. However, due to a lack of methodology and time, SME entrepreneurs struggle to formalize their strategies and too often remain ill-prepared to face today's potential crises. This paper aims to propose a Risk Management (RM) tool to identify and assess the impact of risks on specific business strategic dimensions. The hypotheses and robustness of the model are tested using Monte Carlo simulation. The analysis shows that a reduced strategic risk matrix (size [Formula: see text]) could provide the same quality of information as a full strategic risk matrix (size [Formula: see text]) in about 80% of the cases, regardless of the weight of each criterion and the values of each risk factor. The results extend the limited use of RM tool in the field of SME Risk Management.

Keywords: Decision analysis; Strategic risk management; Monte Carlo simulation; Risk matrix; SMEs (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-isf, nep-rmg and nep-sbm
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Published in International Journal of Information Technology and Decision Making, 2021, 20 (03), pp.987-1009. ⟨10.1142/s0219622021500255⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03295416

DOI: 10.1142/s0219622021500255

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