Evaluation of the critical success factors of dynamic enterprise risk management in manufacturing SMEs using an integrated fuzzy decision-making model

To succeed, a firm essentially needs to take the right amount of risk. Thus, the great significance of risk management has attracted many researchers to focus on how to implement enterprise risk management (ERM) systems most effectively. Generally, smaller entrepreneurial firms have to cope with this challenge more informally. Most manufacturing small and medium-sized enterprises (SMEs) are family companies; as a result, family dynamics greatly impact how such companies do business. The q-rung orthopair fuzzy set (q-ROFS) provides a wide window for the preference elicitation of decision-makers (DMs). Inspired by the advantages of the q-ROFS, in the current paper, a novel decision framework, the q-ROF-entropy-rank sum (RS)-additive ratio assessment (ARAS), called the "q-ROF-entropy-RS-ARAS" approach, is developed. The q-ROF-entropy-RS approach is applied to compute the weights of critical success factors (CSFs) for dynamic ERM in SMEs, and the q-ROF-ARAS model is used to assess enterprise preferences. An empirical case study is conducted to evaluate the CSFs for dynamic enterprise risk management in SMEs. Additionally, the comparison and sensitivity investigation are carried out to show the superiority of the developed framework.