Assessing Enterprise Risk Management (ERM) Practices and Financial Sustainability Among Retail SMEs in Dagupan City

Author

Mardion U. Soriano, Dr. Amalia G. Dela Cruz, Dr. Jean V. Ramos


Abstract

 This study examined the relationship between Enterprise Risk Management (ERM) practices and financial sustainability among retail small and medium enterprises (SMEs) in Dagupan City, with business profile considered as a moderating variable. ERM practices were assessed in terms of risk identification, risk assessment, risk response, risk monitoring, and risk communication. Financial sustainability was measured through profitability, liquidity, solvency, cash flow stability, and business continuity. Business profile covered years of operation, number of employees, capitalization, and business size. A quantitative descriptive-correlational research design was used. Data were gathered from 150 retail SME owners, managers, or authorized representatives using a structured questionnaire. Statistical tools included frequency, percentage, weighted mean, standard deviation, Pearson product-moment correlation, and moderation analysis. Findings showed that retail SMEs implemented ERM practices to a high extent and demonstrated a high level of financial sustainability. Results further revealed a significant positive relationship between ERM practices and financial sustainability. Business profile, particularly years of operation, capitalization, and business size, significantly moderated the relationship. The study concluded that effective ERM practices contribute to the financial sustainability of retail SMEs in Dagupan City.


Keywords

Enterprise Risk Management, financial sustainability, retail SMEs, risk management, business profile



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