SMEs financial risk management assessment in an emerging country: a sad reality of if and cons

This paper extends the results of a previous paper by enlarging the sample used. In this respect, this empirical paper assesses the current state of SMEs financial risk management in an emerging country. Using a descriptive survey as research method, my results document that liquidity and credit are the main financial risks that Romanian SMEs are exposed to. Moreover, Romanian SMEs seems not to be aware of the benefits of having departments of risk management assessment neither risk managers designated or formalised risk management processes. My results indicate also that Romanian SMEs are not aware of the benefits of implementing a holistic risk management approach and the attitude towards risk and uncertainty assessment is more reactive than proactive. As main limitations of my study I could observed both the central tendency bias in the responses gave by my respondents and in some cases social desirability bias. Future research is also approached.