Abstract
Although the majority of German companies in general and leasing companies in particular are small and medium-sized enterprises (SMEs) and even though risk management is gaining more and more practical as well as academic relevance, there are only very few studies focusing on risk management in SMEs. This paper aims to fill this gap by presenting a comprehensive approach to the topic and presenting a framework tailored for leasing SMEs. Research was based on 40 semi-structured in-depth interviews, thereof 35 SMEs and 5 large German leasing companies. This represents about 25% of the whole German leasing market in terms of annual sales volume and number of active leasing firms. Based on the interviews, a framework on enterprise-wide risk management was developed with a grounded theory approach and also a scoring of interviewees was undertaken. The scoring was based on the Miles and Snow typology (Miles et al., Acad Manage Rev 3(3):546–562, 1978). It was found that a clear size effect exists. Smaller and owner-managed companies tend more often to have a passive and simplistic approach to risk management, whereas larger and non-owner-managed firms have more active, sometimes also enterprise-wide approaches to risk management in place.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Alquier, B.A.M., Tignol, L.M.H.: Risk management in small-and medium-sized enterprises. Prod. Plan. Control 17(3), 273–282 (2006)
Arnsfeld, T., Berkau, C., Frey, A.: Risikomanagement im Mittelstand: Luxus oder Notwendigkeit. Controller Magazin 32(5), 488–493 (2007)
Babbie, E.R.: The Practice of Social Research. Nelson Education, Boston, MA (2015)
Brustbauer, J.: Enterprise risk management in SMEs: towards a structural model. Int. Small Bus. J. 34(1), 70–85 (2016)
Bundesverband Deutscher Leasing-Unternehmen e.V. (BDL): Homepage, https://bdl.leasingverband.de/internet/downloads/Broschueren/Marktstudien/2015-marktstudie.pdf. Last accessed 27 Jun 2018
Committee of Sponsoring Organizations of the Treadway Commission (COSO) Homepage: https://www.coso.org/Documents/2017-COSO-ERM-Integrating-with-Strategy-and-Performance-Executive-Summary.pdf. Last accessed 27 Jun 2018
CPA Ireland Homepage: http://www.cpaireland.ie/docs/default-source/business-resource/icaew---risk-management-among-smes.pdf?sfvrsn=2. Last accessed 27 Jun 2018
Dana, L.-P.: Entrepreneurship and SMEs in the Euro-Zone: Towards a Theory of Symbiotic Entrepreneurship. World Scientific Books, London (2006)
De Laurentis, G., Riani, M.: Estimating LGD in the leasing industry: empirical evidence from a multivariate model. In: Altman, E., Resti, A., Sironi, A. (eds.) Recovery Risk. The Next Challenge in Credit Risk Management, pp. 143–164. Risk Books, London (2005)
Deloitte Homepage: http://www.leaseurope.org/uploads/documents/Basel%203/Implicit%20Risk%20Weights%20for%20SME%20Leasing%20in%20Europe%20-%20Key%20Findings.pdf. Last accessed 27 Jun 2018
Edmondson, A.C., McManus, S.E.: Methodological fit in management field research. Acad. Manage. Rev. 32(4), 1246–1264 (2007)
Gholamreza Farsad, A.: The influence of external factors on the credit risk in leasing industry. Manage. Sci. Lett. 6(3), 251–258 (2016)
Gholamreza Farsad, A., Joriah Binti, M.: The influence of micro economic factors on the default risk of leasing industry. Manage. Sci. Lett. 6(1), 99–108 (2016)
Gimenez, F.A.: The benefits of a coherent strategy for innovation and corporate change: a study applying Miles and Snow’s model in the context of small firms. Creativity Innov. Manage. 9(4), 235–244 (2000)
Gleißner, W., Berger, T., Arnold, M.: Risikomanagement, 5th edn. Carl von Ossietzky Universität Oldenburg, Center für lebenslanges Lernen C3L, Oldenbourg (2016)
Gleißner, W., Lienhard, H., Stroeder, D.H.: Risikomanagement im Mittelstand: Planungssicherheit erhöhen, Rating verbessern, Unternehmen sichern. RKW, Eschborn (2004)
Gontarek, W.: Risk governance of financial institutions: the growing importance of risk appetite and culture. J. Risk Manage. Finan. Inst. 9(2), 120–129 (2016)
Grunert, J., Weber, M.: Empirische Evidenz zur Prognose des Ausfallwahrscheinlichkeit und der Recovery Rate von Bankkrediten an deutsche Unternehmen. University Mannheim, Mannheim (2005)
Hartmann-Wendels, T., Elbracht, H.C.: Ermittlung und Schätzung des Loss Given Default im Leasing: Die Verlustquote als Mischverteilung. Leasing-Wissenschaft & Praxis 8(1), 67–80 (2010)
Hartmann-Wendels, T., Miller, P., Töws, E.: Loss given default for leasing: parametric and nonparametric estimations. J. Bank. Finan. 40(2014), 364–375 (2014)
Henschel, T.: Risk management practices in the main industries of German small to medium-sized enterprises an empirical investigation: an Empirical Investigation. Doctorate, School of Accounting, Economics and Statistics. Edinburgh Napier University, Edinburgh (2007)
Henschel, T.: Typology of risk management practices: an empirical investigation into German SMEs. Int. J. Entrepreneurship Small Bus. 9(3), 264–294 (2010)
Hill, M.: Mind the gap—financing decisions in midcap firms. Doctorate of Business Administration, Edinburgh Napier University, Edinburgh (2016)
Hoitsch, H.-J., Winter, P., Baumann, N.: Risikocontrolling bei deutschen Kapitalgesellschaften Ergebnisse einer empirischen Untersuchung. Controlling 18(2), 69–78 (2006)
ISO Homepage: https://www.iso.org/standard/65694.html. Last accessed 27 Jun 2018
Kirchner, M.: Risikomanagement: Problemaufriss und Umsetzungsmöglichkeiten in KMU. Zeitschrift für das gesamte Genossenschaftswesen 52(1), 189–200 (2002)
Leitch, M.: ISO 31000: 2009—the new international standard on risk management. Risk Anal. 30(6), 887–892 (2010)
Miles, R.E., Snow, C.C., Meyer, A.D., Coleman, H.J.: Organizational strategy, structure, and process. Acad. Manag. Rev. 3(3), 546–562 (1978)
Pfingsten, A., Kaposty, F., Löderbusch, M.: Analyse der Verlustquoten im Leasing-Geschäft. Finanzierung Leasing Factoring 63(3), 94–98 (2016)
Pirotte, H., Vaessen, C.: Residual value risk in the leasing industry: a European case. Eur. J. Finan. 14(1–2), 157–177 (2008)
RIMS Homepage: https://www.rims.org/resources/ERM/Documents/Risk%20in%20Government.pdf. Last accessed 27 Jun 2018
Saunders, M., Lewis, P.: Doing Research in Business and Management: An Essential Guide to Planning Your Project. Financial Times Prentice Hall, Harlow (2012)
Saunders, M., Lewis, P., Thornhill, A.: Research Methods for Business Students, 5th edn. Financial Times Prentice Hall, Harlow (2009)
Schmit, M.: Credit risk in the leasing industry. J. Bank. Finan. 28(4), 811–833 (2004)
Shrader, C.B., Mulford, C.L., Blackburn, V.L.: Strategic and operational planning, uncertainty, and performance in small firms. J. Small Bus. Manage. 27(4), 45–60 (1989)
Smallman, C.: Risk and organizational behaviour: a research model. Disaster Prev. Manage. 5(2), 12–26 (1996)
Spikin, I.C.: Risk management theory: the integrated perspective and its application in the public sector. Estado, Gobierno y Gestión Pública 2013(21), 89–126 (2013)
The Commission of the European Communities: Commission recommendation concerning the definition of micro, small and medium-sized enterprises. Off. J. Eur. Union 46(L124), 36–41 (2003)
Tot, I.: Residual value risk in automotive operating lease contracts. Zbornik Pravnog Fakulteta Sveučilišta u Rijeci 38(1), 303–336 (2017)
Vasiliauskaitė, A., Cvilikas, A.: Fuzzy sets theory adoption for credit risk assessment in leasing sector. Taikomoji ekonomika: sisteminiai tyrimai 2(1), 85–98 (2008)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this paper
Cite this paper
Glaser, C. (2019). Risk Management in German Leasing SMEs—A Qualitative Study. In: Linsley, P., Shrives, P., Wieczorek-Kosmala, M. (eds) Multiple Perspectives in Risk and Risk Management. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-16045-6_9
Download citation
DOI: https://doi.org/10.1007/978-3-030-16045-6_9
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-16044-9
Online ISBN: 978-3-030-16045-6
eBook Packages: Business and ManagementBusiness and Management (R0)