Risk categorization in Portuguese organizations in times of the COVID-19 pandemic: An exploratory statistical analysis

Abstract

Purpose This work aims to characterize the risks companies deal with in the context of a pandemic, and to ascertain which risk type is most present in Portuguese organizations. It is also intended to verify whether there are differences in the various risk types between companies that had or did not have a plan or strategy to act in a pandemic, such as the one caused by COVID-19.

Design/methodology/approach A quantitative methodology was used, based on the application of a questionnaire survey targeting the Portuguese companies. The sample is composed of 1,647 Portuguese companies, which were queried through a questionnaire survey that analyses different risk types. Then, the software R was used to treat the results.

Findings The results show that companies are exposed and vulnerable to uncertain events, and five risk types were formed: legal, image, financial, strategic and operational. There is a bigger concern about the management of financial risks.

Practical implications Academics and companies can become more aware and master the concept of risk and its different branches, which consequently favours the adoption of strategies to better manage and plan risk.

Originality/value The literature on international businesses and their risks assumes that all crises are the same. However, the COVID-19 pandemic, besides causing a recession, obliges people and companies to adapt to a new scenario. Risks become more important to companies, in a way that had not been academically studied.