Operational Risk Management and Financial Performance in Moroccan Firms: Empirical Evidence from TPEs and SMEs

Abstract

In an economic environment marked by uncertainty, increased competition, and digital transformation, the issue of operational risk management is becoming crucial for the sustainability of Moroccan businesses. Very small, small, and medium-sized enterprises (VSMEs), which form the backbone of the national economy, are particularly vulnerable to financial, technological, and organizational disruptions. Our study addresses this dynamic by seeking to understand the extent to which operational risk management influences the financial performance of Moroccan VSMEs. The research question hinges on the need to assess the effectiveness of governance practices, cash management, process control, human capital, and cybersecurity, in a context where the formalization of risk management remains limited.

Methodologically, this study adopts a quantitative approach based on hypothetical-deductive reasoning and a positivist epistemological perspective. Data were collected using a structured questionnaire and analyzed using partial least squares structural equation modeling (PLS-SEM) via the SmartPLS software. The initial sample comprised 147 contacted companies, of which 117 valid responses were analyzed.

The empirical results highlight a significant contribution of the strategic, financial, operational, and technological dimensions of risk in explaining performance, with the model demonstrating satisfactory overall explanatory power. They also reveal that governance and cash management are the most influential levers, while the human dimension remains poorly integrated into management practices.

The study concludes that there is a need to strengthen risk culture, structure internal processes, and integrate secure management technologies to consolidate the performance and resilience of Moroccan micro, small, and medium-sized enterprises (MSMEs).

JEL Classification : M10, G32, L25, C30.

Paper Type: Empirical Research