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 Campus Saint-Nazaire, 1 Bd de l’Université, CS 70152, F-40603 Saint-Nazaire, France
Mourad Messaadia: #x2020;Lineact Cesi Campus Rouen, F-76808 Saint Etienne de Rouvray, France
Nicolas Maranzana: #x2021;Arts et Metiers Institute of Technology, LCPI, HESAM Université, F-75013 Paris, France
Ameziane Aoussat: #x2021;Arts et Metiers Institute of Technology, LCPI, HESAM Université, F-75013 Paris, France

International Journal of Information Technology & Decision Making (IJITDM), 2021, vol. 20, issue 03, 987-1009

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 4×4) could provide the same quality of information as a full strategic risk matrix (size 20×10) 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
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DOI: 10.1142/S0219622021500255

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