RISK MATRIX – AN INNOVATIVE MANAGEMENT TOOL FOR SME`S

Purpose – increasing the survival rate of SMEs. Methodology/approach – an analysis of the socio-economic framework for the North-West development region of Romania using a mixed research, both qualitatively and quantitatively through the survey method – questionnaire and the analysis and the interpretation of information from the National Office of the Trade Register. Findings – there are signs that the total number of SMEs in the North-West development region of Romania will decrease. In addition, half of the SMEs that participated in the survey do not use management tools to meet the company's objectives. Research limitations/implications – the risk matrix do not eliminate risk, but rather prioritizes the appropriate use of resources and time and facilitate the decision-making. Practical implications – SMEs do not have an entire arsenal of strategic weapons and are often led by the owner-manager who runs the risk of failure following their own ideologies and practices. Originality/value – the use of a risk matrix – an innovative management tool for SMEs with which the management (entrepreneur) will identify and quantify the risks to which the company is exposed, will increase the survival chance of SMEs