The Operating Model of Risk Management in Small and Medium Enterprises in Crisis Conditions: Integration of High Reliability Principles

This article highlights the necessity to revise traditional tools for mitigating the challenges of the crisis environment, such as enterprise risk management, through a theoretical lens that considers the specifics of the modern crisis setting, particularly through high reliability theory. The introduction of enterprise risk management practices positively influences the resilience of small and medium enterprises to crises but does not account for the operations of enterprises in a hazardous, dynamic, and safety-oriented crisis environment. Therefore, referring to the conceptual model «RM / HRT» (Risk Management / High Reliability Theory), it is proposed to develop existing risk management practices in small and medium enterprises in light of the principles of high reliability organizations that take into account the functioning of organizations in dangerous, dynamic, and safety-oriented conditions. The aim of the article is to create an operational model «Risk Management Process / High Reliability Principles» («RMP / HRP») for small and medium-sized enterprises in crisis conditions, through the analysis of scientific literature in the fields of crisis environments, risk management in small and medium-sized enterprises, as well as high reliability theory. The article presents the results of a review of the scientific literature in the areas of the contemporary crisis environment, risk management in small and medium-sized enterprises, and the theory of high reliability. As a result of the literature analysis, an operational model «Risk Management Process / High Reliability Principles» («RMP / HRP») for small and medium-sized enterprises in crisis conditions is proposed, which operationalizes the direction of future research.