The United Nations Industrial Development Organization (UNIDO), the International Trade Centre (ITC) and the International Organization for Standardization (ISO) launched a handbook to help small and medium-sized enterprises (SMEs) better manage potential risks.

it seems you are asking how the risk of SMEs can be measured

if there is adequate financial data, one can look at profit and similar forecasts, and things like break even analysis

otherwise, you would likely use a subjective evaluation, like private equity and angel investors do

by linking it to a specific industry and perhaps a specific factor, you may be looking at sensitivity analysis - the sensitivity of sales/ profit to specific factors or conditions

About measure risks its important you want to measure it in which stage?

Initiating, planning or execution process of any projects demand different methods and procedures. As their importance in any step is different in practice.

Noor

What exactly you want to ask about; Measurement of Risk or Governance of Risk?

Human rights in supply chain (due diligence)

Occupational safety and security

Diversity in employment

Compliance with environmental issues (biodiversity, GHG, energy, water, waste)

etc.

A plausible risk factor is the diversity in the cultural linings of the proprietors of the SMES as well as their control of intellectual capital for sustainability purposes. measure

Dear Arun. Thanks for the response. My main focus will be on the effectiveness of governance in Risk Management.

Dear Martina. Many hanks fro the response. I wish to investigate the effectiveness of governance throughout the business process... I really appreciate you inquiry so I make some analysis on the effectiveness at different stages of SME business operation.

Governance in small Businesses is mainly dependent on the owner. There is no systematic governance.