Page 68 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Table No. 8 – Experience of Accounting & Finance

Figure No. 17 - Experience of Accounting & Finance

6% 8%
6%
18% 16%
20%

75% 74% 66%

Risk and Compliance Management
Walpole, Hugh D (2020) stated that “Perceived risk is
best understood and measured as a multidimensional
construct that includes beliefs about the likelihood and
severity of consequences and the feelings or affect
elicited by the hazard”
Risk identication and measurement is a crucial activity
for the sustainable future of any business. The difference
between Risk and Uncertainty is Risk is the chance of a
predicted outcome happening whereas uncertainty is
the happening of an unexpected outcome. While there is
nothing that can be done about uncertainty as it is a part
of the VUCA world, risk on the other hand is manageable.