The Relationship Between Working Capital Management and Risk Management Among SMEs in the Philippines

Abstract

Working Capital Management WCM as a business strategy enables an organization to operate seamlessly and with minimal problems by monitoring its liabilities with its assets. Part of WCM is Risk Management, but often is an overlooked component specially for Small to Medium enterprises where priorities mostly focus on making profits. Risk Management RM on the other hand is quintessential for controlling present and future threats, allowing room to adapt due to uncertainties such as errors, accidents, and natural disasters. Organizations that have RM tend to focus more on customer service than profits particularly in COVID-19.