The Relationship Between Risk Management and the Success of Small and Medium-Sized enterprises in Riyadh city

Abstract

Small and medium enterprises are often regarded as the foundation of economic and social development in developing nations, and there is no doubt that these initiatives face numerous economic, financial, and administrative risks. However the most significant of which are financial risks. To confront these financial risks must follow carefully considered strategies so that they can be developed and growth. To do so, it must have competent management that is focused on controlling various environmental risks in general and financial risks in particular. The objective of this paper is to discuss the role of financial risk management in the success of small and medium-sized enterprises in Riyadh . Finding a link between financial risks and their beneficial effects on small and medium-sized businesses' growth in Riyadh is the research problem. The paper seeks to comprehend this relationship In order to offer advice and risk-management solutions through a comprehensive literature review . The research also concentrated on the dimensions of financial risks represented by the following: -1- Inadequate financial liquidity.2- Inadequate treasury management .3- Inadequate financial planning.4- The risk of failing to repay loans and debts. The findings of the study will help to raise awareness of the importance of financial risk management in small and medium-sized businesses, as well as provide project owners with the knowledge and resources they need to achieve success and sustainable growth in Riyadh. In addition this paper will present and highlight the most important financial risks that small and medium enterprises will face when they begin, how to avoid these risks, and how to monitor and follow up on these risks for small and medium enterprises when carrying out their activities in order to improve the financial situation of small and medium enterprises in the city of Riyadh. The paper will also give ideas to assist small and medium-sized businesses in dealing with financial risks in order to stabilize and improve their performance and financial status in order to meet project objectives.