Internal Control and Risk Management Practices among Micro Businesses in the Food Industry

Given the growing importance of internal controls and risk management in micro, small, and medium enterprises, this study examined the internal control and risk management practices among of micro food businesses in Iloilo City. Specifically, it described the extent of internal control and risk management practices and examined the differences in these practices according to business profile. The study collected data from micro food business owners in the districts of La Paz, Arevalo, and Mandurriao and analyzed them using descriptive statistics and the Kruskal-Wallis test. The findings showed that segregation of duties and risk mitigation practices were always practice, particularly among businesses with higher sales and longer operating histories. Newer businesses showed less consistent use of physical controls and risk-avoidance practices. The type of food business generally did not show substantial differences in the use of internal control and risk management practices. These findings suggest that consistent practice of segregation of duties, authorization of transaction, physical control, review of transactions, risk avoidance, and risk reduction may strengthen the internal control and manage the risks relating operation and financial of the business and sustainability of micro food businesses. The study recommends strengthening physical controls, risk management practices, and employee training to improve business operations and financial management.