Track: Business Management
The manufacturing sector has become one of the competitive industries. The demands of a competitive business environment require business firms to be able to respond well to uncertainties. The study aimed to identify the risks and the risk management strategies in the South African manufacturing environment. The study used survey questionnaire to collect quantitative and qualitative data required to answer the research questions. The collected data was analysed through grouping of themes, proportional analysis and descriptive statistics. The research results indicated that risks experienced in manufacturing firms are strategic risks, operational risks, financial risks and hazardous risks. The study found that the risk management strategies employed by the majority of the firms are precautionary risk management strategies and risk informed strategies, where with precautionary risk strategy, mitigation measures are taken even though the causes and the effects of the suspected risks are not fully proven and with risk informed strategies the organization’s risk appetite, risk culture and risk governance are taken into consideration when addressing risks. The research further found that manufacturing firms are more familiar with risk management tools like FMEA, risk matrix approach and brainstorming.