Italian SMEs need better risk management

The representative study was conducted by the Venice University Ca' Foscari and research provider DEMOS. The poll in Italy involved more than 760 companies. The results were then compared across Europe.

In Italy, many SMEs are still lacking risk management expertise, although the perception that risks have increased dramatically as a result of the crisis is widespread. According to the study, less than one-third of the Italian companies declared themselves well-equipped in terms of risk evaluation, management capabilities and efficient risk management tools. 

Moreover, the Italian industrial sector is structurally under-insured: according to industry data, total insurance premiums amount to only 1 percent of GDP (compared to approximately 3 percent in Germany and the United Kingdom, more than 2 percent in France and 1.8 percent in Spain). 

In the study, the Italian entrepreneurs also revealed their perception of the major risks in 2009: 37 percent ranked payment delays or client defaults as the number one risk, while 20 percent expressed concerns about the credit crunch and the rising cost of capital and funding. A good 16 percent were worried about the lack of business orders and other impacts of the crisis on global and national demand.

Comparing the 2009 risks with expectations for 2010, Italian entrepreneurs forecast better conditions for credit, but higher negative effects on demand as a result of the crisis.