The Market Risk Analysis and Methodology of its More Effective Management in Smes in the Slovak Republic

Abstract

The worldwide surveys indicate that many enterprises still fight with the application of corporate risk management. Problems with the risk management application are observed in the Slovak enterprises, too. According to our survey, just the market risk is one of the most important risks of SMEs in Slovakia especially when they do not manage it sufficiently. They do not deal with conditions or the preventive measures which could reduce or prevent the problem. The aim of this paper is to present the results of the survey oriented on the business risks faced by the SMEs in Zilina region with a special focus on the market risk and proposing the methodology of enterprise risk management for more effective market risk control. The analysis of the market risk is carried out through the analysis of the selected statistical characteristics using the point and interval estimates and other methods of mathematical statistics. The results of the survey showed that the influence of the market risk on value of the SMEs in Slovakia should not be underestimated.

Keywords

• risk management
• proposal of methodology
• market
• small and medium-sized enterprises.