Volume 40, Issue 4, October 2023, Pages 1069–1083
Mayegle François Xavier1 and Ngoe Frankline Dioni2
1 Faculty of Economic science and Applied Management (FSEGA), University of Douala, Cameroon
2 ENSET DE DOUALA –LAREGA, University of Douala, Cameroon
Original language: English
Copyright © 2023 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
One of the most common types of risk faced by SMEs of the hotel sector in Cameroon is the operational risk as there exist uncertainty related to personnel, clients, processes and systems that motivated this study. Today, organizations are investing a lot on business activities which requires risk management practices to mitigate the negative outcomes of operational risks. In line with this, the study focuses on the effect of operational risk management on the profitability of Small and Medium Size Enterprises (SMEs) of the hotel sector in Cameroon. The data used was collected through questionnaires and limited to SMEs of the target sector, imputed through SPSS and analyzed by multiple correlations with ANOVA tables. The findings reveals that there exist strong positive relationship between operational risk management and profitability. Hence, By managing enterprise-wide risk, the management will develop a unified picture of risk for decision-making and improve the organization’s ability to manage risk effectively which can enhance its profitability. This present research will give new insight to the researchers and will help them to consider the proposed model to implement and generalize in different settings.
Author Keywords: Operational Risk Management, Profitability, SMEs.
Mayegle François Xavier1 and Ngoe Frankline Dioni2
1 Faculty of Economic science and Applied Management (FSEGA), University of Douala, Cameroon
2 ENSET DE DOUALA –LAREGA, University of Douala, Cameroon
Original language: English
Copyright © 2023 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
One of the most common types of risk faced by SMEs of the hotel sector in Cameroon is the operational risk as there exist uncertainty related to personnel, clients, processes and systems that motivated this study. Today, organizations are investing a lot on business activities which requires risk management practices to mitigate the negative outcomes of operational risks. In line with this, the study focuses on the effect of operational risk management on the profitability of Small and Medium Size Enterprises (SMEs) of the hotel sector in Cameroon. The data used was collected through questionnaires and limited to SMEs of the target sector, imputed through SPSS and analyzed by multiple correlations with ANOVA tables. The findings reveals that there exist strong positive relationship between operational risk management and profitability. Hence, By managing enterprise-wide risk, the management will develop a unified picture of risk for decision-making and improve the organization’s ability to manage risk effectively which can enhance its profitability. This present research will give new insight to the researchers and will help them to consider the proposed model to implement and generalize in different settings.
Author Keywords: Operational Risk Management, Profitability, SMEs.
How to Cite this Article
Mayegle François Xavier and Ngoe Frankline Dioni, “The effect of operational risk management on the profitability of small and medium size enterprises of the hotel sector in Cameroon,” International Journal of Innovation and Applied Studies, vol. 40, no. 4, pp. 1069–1083, October 2023.
