Advertisement

Risk Management in German Leasing SMEs—A Qualitative Study

  • Christian GlaserEmail author
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

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.

Keywords

Risk management Small and medium-sized enterprises SMEs Leasing Germany Financial service firms 

References

  1. Alquier, B.A.M., Tignol, L.M.H.: Risk management in small-and medium-sized enterprises. Prod. Plan. Control 17(3), 273–282 (2006)CrossRefGoogle Scholar
  2. Arnsfeld, T., Berkau, C., Frey, A.: Risikomanagement im Mittelstand: Luxus oder Notwendigkeit. Controller Magazin 32(5), 488–493 (2007)Google Scholar
  3. Babbie, E.R.: The Practice of Social Research. Nelson Education, Boston, MA (2015)Google Scholar
  4. Brustbauer, J.: Enterprise risk management in SMEs: towards a structural model. Int. Small Bus. J. 34(1), 70–85 (2016)CrossRefGoogle Scholar
  5. Bundesverband Deutscher Leasing-Unternehmen e.V. (BDL): Homepage, https://bdl.leasingverband.de/internet/downloads/Broschueren/Marktstudien/2015-marktstudie.pdf. Last accessed 27 Jun 2018
  6. 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
  7. Dana, L.-P.: Entrepreneurship and SMEs in the Euro-Zone: Towards a Theory of Symbiotic Entrepreneurship. World Scientific Books, London (2006)CrossRefGoogle Scholar
  8. 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)Google Scholar
  9. Edmondson, A.C., McManus, S.E.: Methodological fit in management field research. Acad. Manage. Rev. 32(4), 1246–1264 (2007)CrossRefGoogle Scholar
  10. Gholamreza Farsad, A.: The influence of external factors on the credit risk in leasing industry. Manage. Sci. Lett. 6(3), 251–258 (2016)CrossRefGoogle Scholar
  11. 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)Google Scholar
  12. 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)CrossRefGoogle Scholar
  13. Gleißner, W., Berger, T., Arnold, M.: Risikomanagement, 5th edn. Carl von Ossietzky Universität Oldenburg, Center für lebenslanges Lernen C3L, Oldenbourg (2016)Google Scholar
  14. Gleißner, W., Lienhard, H., Stroeder, D.H.: Risikomanagement im Mittelstand: Planungssicherheit erhöhen, Rating verbessern, Unternehmen sichern. RKW, Eschborn (2004)Google Scholar
  15. 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)Google Scholar
  16. Grunert, J., Weber, M.: Empirische Evidenz zur Prognose des Ausfallwahrscheinlichkeit und der Recovery Rate von Bankkrediten an deutsche Unternehmen. University Mannheim, Mannheim (2005)Google Scholar
  17. 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)Google Scholar
  18. Hartmann-Wendels, T., Miller, P., Töws, E.: Loss given default for leasing: parametric and nonparametric estimations. J. Bank. Finan. 40(2014), 364–375 (2014)CrossRefGoogle Scholar
  19. 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)Google Scholar
  20. Henschel, T.: Typology of risk management practices: an empirical investigation into German SMEs. Int. J. Entrepreneurship Small Bus. 9(3), 264–294 (2010)CrossRefGoogle Scholar
  21. Hill, M.: Mind the gap—financing decisions in midcap firms. Doctorate of Business Administration, Edinburgh Napier University, Edinburgh (2016)Google Scholar
  22. Hoitsch, H.-J., Winter, P., Baumann, N.: Risikocontrolling bei deutschen Kapitalgesellschaften Ergebnisse einer empirischen Untersuchung. Controlling 18(2), 69–78 (2006)CrossRefGoogle Scholar
  23. ISO Homepage: https://www.iso.org/standard/65694.html. Last accessed 27 Jun 2018
  24. Kirchner, M.: Risikomanagement: Problemaufriss und Umsetzungsmöglichkeiten in KMU. Zeitschrift für das gesamte Genossenschaftswesen 52(1), 189–200 (2002)CrossRefGoogle Scholar
  25. Leitch, M.: ISO 31000: 2009—the new international standard on risk management. Risk Anal. 30(6), 887–892 (2010)CrossRefGoogle Scholar
  26. 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)CrossRefGoogle Scholar
  27. Pfingsten, A., Kaposty, F., Löderbusch, M.: Analyse der Verlustquoten im Leasing-Geschäft. Finanzierung Leasing Factoring 63(3), 94–98 (2016)Google Scholar
  28. Pirotte, H., Vaessen, C.: Residual value risk in the leasing industry: a European case. Eur. J. Finan. 14(1–2), 157–177 (2008)CrossRefGoogle Scholar
  29. Saunders, M., Lewis, P.: Doing Research in Business and Management: An Essential Guide to Planning Your Project. Financial Times Prentice Hall, Harlow (2012)Google Scholar
  30. Saunders, M., Lewis, P., Thornhill, A.: Research Methods for Business Students, 5th edn. Financial Times Prentice Hall, Harlow (2009)Google Scholar
  31. Schmit, M.: Credit risk in the leasing industry. J. Bank. Finan. 28(4), 811–833 (2004)CrossRefGoogle Scholar
  32. 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)Google Scholar
  33. Smallman, C.: Risk and organizational behaviour: a research model. Disaster Prev. Manage. 5(2), 12–26 (1996)CrossRefGoogle Scholar
  34. 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)Google Scholar
  35. 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)Google Scholar
  36. Tot, I.: Residual value risk in automotive operating lease contracts. Zbornik Pravnog Fakulteta Sveučilišta u Rijeci 38(1), 303–336 (2017)CrossRefGoogle Scholar
  37. Vasiliauskaitė, A., Cvilikas, A.: Fuzzy sets theory adoption for credit risk assessment in leasing sector. Taikomoji ekonomika: sisteminiai tyrimai 2(1), 85–98 (2008)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.University of PortsmouthPortsmouthUK

Personalised recommendations