Republic of the Philippines

Department of Education
Region IV A – CALABARZON
Division of Quezon
Recto Memorial National Highschool
Tiaong, Quezon

Risk Management Strategies in Tiaong, Quezon: A Comparative

Analysis of Manufacturing and Service Businesses

A Research Paper Presented to the

Faculty of Senior High School Department

As a Partial Fulfillment of the Requirements

In Inquiries, Investigation, Immersion

Marikit, Kc M.

Guevarra, Jaizehr Luke

De Vera, Roxanne Mae

April 2024

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 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

Each business has its own strengths and limitations, as well as

opportunities that they should grab and challenges that must be addressed.

Those threats are the uncontrollable events that they may encounter, which

have a detrimental impact on the business, similar to other risks. As business

owners, it is critical that they understand potential risks and manage or

prevent them as much as possible in a short period of time. This could assist

the business avoid those hazards, resulting in a successful and wealthy

business. Businesses utilize different ways in order to decrease the impact of

such risks on the businesses; they construct a plan, benchmark in other

firms, and execute the strategies that they formulate either for the long term

or short term that is suitable to solve the problems in the business.

According to Kenton (2023), business risk as the potential loss of profitability

or failure of a company due to factors that compromise its ability to meet

financial objectives. Numerous factors can contribute to business risk, and

senior leadership or management can create scenarios where a corporation

is exposed to higher levels of risk. Manufacturers and service businesses are

profitable businesses with more risk because their purpose is to earn profit.

There are numerous risks that can negatively affect profit, which is why risk-

management strategies use to assess and mitigate those threats to the

business capital, operation, and earnings.

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 Businesses encounter risks when there is uncertainty surrounding

various aspects such as strategy, profits, compliance, environment, and

health and safety. According to The Royal Society (1992), risk is defined as

‘the probability that a particular adverse event occurs during a stated period

of time, or results from a particular challenge’. It is also a potential threat to

a firm's operations, reputation, market share, and profitability. They can

result from internal decisions and external responses from different parties

involved (Graetz & Franks, 2016). Additionally, both internal and external

risks can have various effects on its operations and overall performance.

Internal risks include human-factor, technological, and financial risks.

Human-factor risks involve personnel issues like illnesses, injuries,

dishonesty, and labor disputes, which can lead to decreased productivity and

reputational damage. Technological risks arise from changes in technology,

cybersecurity threats, and disruptions in IT infrastructure, impacting

efficiency and data security. Physical risks refer to threats to physical assets

like equipment and facilities, caused by events like fires or accidents.

External risks include market, supply chain, and environmental and social

risks. Market risks stem from changes in customer preferences and

competition, while supply chain risks involve disruptions in the supply chain.

Environmental and social risks relate to factors like climate change and

public perception. Failure to address these risks can result in reputational

damage and legal liabilities. Business risks can lead to financial losses,

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operational disruptions, and reputational damage. To mitigate these risks,

businesses should implement risk management strategies.

Despite the risks that service and manufacturing organizations might

encounter, there are strategies that may be implemented to prevent them;

however, it is critical that such tactics be beneficial in a variety of risk

situations. LogicGate Risk Cloud. (n.d.) stated that creating a risk

management plan is a methodical and iterative process. A six-step method

can assist your company in identifying, assessing, and responding to any

risk. The first step is to identify the risks that your firm faces, then assign

severity levels to those risks, develop risk mitigation measures, monitor

controls for effectiveness, communicate risk, and finally continuously analyze

and adapt strategies and plans. To determine the effectiveness of the

strategies that this study will focus on by knowing their impact in businesses.

A successful risk management program helps a business in assessing the

complete range of hazards. Risk management also investigates the

relationship between various forms of business risks and the cascading

effects they may have on an organization's strategic objectives.

Furthermore, the company's position of risk leaders is to give a

framework for identifying and analyzing the financial impact of loss to the

business, employees, and the public, as this is extremely important and must

be addressed immediately. Aside from that, the department has established

a risk management office with the goal of developing an integrated approach

to risk management that can be used uniformly across all sectors of the

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department, which will be beneficial in business. The policy aims to establish

a risk culture within the Department, ensure its risk management approach

aligns with strategic and operational objectives, educate employees on their

role in risk management, provide guidelines for risk identification, evaluation,

and management, and foster a shared responsibility for risk management

across the department through the establishment of a permanent Risk

Management Office. One of the legal bases for the Enhanced DSWD Risk

Management Framework Memorandum Circular No. 27 series of 2014 is the

Republic Act No. 11032, also known as the Ease of Doing Business and

Efficient Government Services Delivery Act of 2018, which required all

government offices, agencies, and local government units to review and

harmonize existing regulations and repeal redundant and unnecessary

policies in order to reduce regulatory burdens. (DSWD, 2021)

Different risks may be encountered by a business depending on

whether it is a profit-making or non-profit business. Profit and non-profit

businesses have distinct objectives, financial structures, and strategies.

Profit businesses aim to maximize financial returns for owners or

shareholders, employing strategies such as market research, competitive

pricing, cost control, and financial planning to mitigate risks. In service,

manufacturing, and merchandising, profit businesses face risks like market

competition, economic fluctuations, changing consumer preferences, and

financial risks. On the other hand, non-profit businesses focus on serving a

cause or community, relying on funding sources like donations and grants.

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They employ strategies such as fundraising, community engagement, and

strategic partnerships to address risks like limited funding, donor

dependency, regulatory compliance, and reputational risks. Both types of

businesses employ specific strategies tailored to their objectives and

industry to navigate the risks they face. However, there is an increased risk

associated with operating a profit-making business. Typical profit-making

industries include manufacturing, services, and retail. In addition, they

employed different strategies, which is why it's critical to distinguish them

for this study.

Background of the Study

A risk management strategy is a key part of the risk management

lifecycle, wherein a risk management cycle contains the process of

Identification; Assessment; Treatment; Monitoring; Reporting. After

identifying risks and assessing the likelihood of them happening, as well as

the impact they could have, a business owner will need to decide how to

address them. The approach one decides to take is his/her risk management

strategy. This is also sometimes referred to as risk treatment. There are four

risk management strategies, namely Risk acceptance; Risk transference;

Risk avoidance; Risk reduction. Choosing among these strategies are

deemed to be a “make it or break it” decision making, choosing the most

appropriate one will mean the difference between managing each potential

risk effectively or facing serious consequences that could damage a

business.

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 Risk acceptance is a risk that is accepted without any mitigation

action. This approach may not reduce the impact of a risk or prevent it from

happening, but it may be more beneficial in certain situations. For instance,

it is better not to spend Php 100,000 to prevent a Php 10,000 risk from

occurring. Risks should only be accepted when they have a low chance of

happening or have minimal impact on loss. However, business owners' ability

to address future risks is an important factor to consider under risk

acceptance. Risk transference is a concept where an organization transfers a

potential problem to an external party through a contract, but the risk still

exists. This can be seen in travel insurance, where the organization pays a

company to handle financial consequences. In work, tasks and associated

risks may be outsourced to a contractor, and in finance, a third party might

adopt a hedging strategy to protect assets or investments. The fundamental

idea is that, despite the risk persisting, another party assumes responsibility

for its management (Ideagen, n.d.).

Risk avoidance is a strategy that involves refraining from actions that

could lead to potential risks, such as investing. This approach is best suited

for situations with significant potential impact on the organization. However,

consistently avoiding every risk may result in missed opportunities, such as

profitable returns. Therefore, organizations must carefully assess risks and

make informed judgments to strike a balance between avoiding potential

harm and seizing valuable opportunities. This approach is best suited for

situations where the potential impact on the organization is significant. Risk

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reduction is a strategy that reduces the severity of a risk by taking

preventative measures to minimize its impact. It is often referred to as

lowering risk. This approach involves identifying measures to make risks

more manageable and provide effective solutions. For instance, in the

finance industry, implementing a digital solution to manage regulatory

requirements can mitigate non-compliance risks and serve as an example of

risk reduction (Ideagen, n.d.).

This study will only concentrate on two business types: manufacturing

and service businesses, as its primary objective is to identify risk and

strategies through comparison of various business models. These two

businesses are very different from one another, Service businesses provide

intangible services, focusing on delivering high-quality experiences and

meeting specific requirements through customization and personalization.

Rather than offering a tangible good, a service business offers specialized

services, in-person work, or knowledge. These services are available to assist

those who lack the time, expertise, or resources to finish the duties on their

own. Because of this, companies that provide services are frequently

profitable and in great demand (Best Practices, 2023). While Manufacturing

businesses focus on efficient processes, quality control, and cost-effective

techniques to produce tangible goods. However, they face risks like supply

chain disruptions, production efficiency challenges, and market demand

variability. Jenkins (2022) asserts that manufacturing companies produce the

majority of the goods we use, such as furniture, medical equipment,

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electronics, and airplanes. Distributing those goods to clients directly or via

middlemen like retail establishments is one option. Certain factories produce

parts that are used in the goods of other businesses.

Tiaong, Quezon, a burgeoning town in the Philippines, is home to

diverse businesses in both manufacturing and service sectors. With the

town's economic growth, local companies encounter a spectrum of risks that

can impact their success. To navigate these challenges effectively,

businesses must develop strategies that encompass various dimensions of

risk, including those associated with calamities and natural disasters.

In the manufacturing sector of Tiaong, involving the production of a

wide array of goods, enterprises grapple with risks such as supply chain

disruptions, market fluctuations, and technological changes. Additionally, the

unpredictable nature of calamities and natural disasters adds another layer

of complexity to their risk landscape. On the other hand, service industries,

encompassing fields like finance and hospitality, confront distinct risks,

including cybersecurity threats, customer satisfaction concerns, and the

need for efficient response plans in the face of unforeseen events.

This study aims to gain insights into how businesses in Tiaong, Quezon

manage risks comprehensively, acknowledging the presence of

unpredictable factors such as calamities. Through a comparative analysis of

manufacturing and service industries, the research aims to identify specific

risks, evaluate the effectiveness of current risk management practices, and

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propose strategies for improvement, encompassing both everyday

challenges and the potential impact of unforeseen events.

Significance of the Study

This research is being conducted with the goal of providing information

and understanding about the difference between a service business and a

manufacturing business based on the risks that the business owners have

encountered in their businesses, as well as information from research studies

and related sites. With the study's findings, the researchers will be able to

establish which strategies for risk management are more effective and

suitable to the risks that these two businesses encounter. This study will

benefit the following:

First is for the Business owner/risk manager, the study provides

valuable insights into effective risk management strategies for businesses. It

helps business owners and risk managers identify and mitigate industry-

specific risks, leading to more successful and sustainable businesses.

Second is for the Potential Entrepreneur, this study offers a

comparative analysis of risk management strategies in manufacturing and

service industries. It guides potential entrepreneurs in understanding the

risks and developing effective risk management plans, increasing their

chances of success.

Third, for the Customers, this study indirectly impacts the quality of

products and services offered by businesses. By analyzing risk management

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strategies, businesses can enhance their operational efficiency, minimize

disruptions, and ensure customer satisfaction. This, in turn, builds trust and

confidence among customers in the businesses they engage with. It also

raises awareness among customers about the importance of risk

management in ensuring their own safety and well-being.

Lastly, for the Future Researcher, the study contributes to the field

of risk management by providing a foundation for future research. It offers a

comparative analysis of manufacturing and service industries, inspiring

researchers to explore specific aspects of risk management and contribute to

theory and practice in the field.

Scope and Delimitations of the Study

The objective of this study is to differentiate the risks experienced by

service and manufacturing businesses in Tiaong, Quezon and evaluate the

effectiveness of four main risk management strategies. This study seeks to

investigate how these risk management strategies influence the overall

effectiveness of their operations. By carefully analyzing the collected

information, we can obtain valuable insights into the effectiveness of risk

management strategies in mitigating risks for service and manufacturing

businesses.

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 This research focuses on gathering information from 2 different type of

business. The responses are separated into two categories: 5 in Service

Business and 5 in Manufacturing Business in Tiaong, Quezon. The main

respondents targeted are the owners or managers of these businesses.

This study aims to contribute new knowledge by focusing on the

effectiveness of risk management strategies specifically for service and

manufacturing businesses. While previous studies have primarily identified

the potential risks faced by businesses, there is limited research on the

specific risk management strategies employed by these businesses. By

narrowing the scope to service and manufacturing businesses, this study will

provide a comprehensive analysis of the strategies implemented by owners

and managers to mitigate risks. The findings of this research will offer

valuable insights into the practical and effective risk management strategies

utilized by service and manufacturing businesses, addressing the current

lack of understanding in this area.

Research Paradigm
Independent variable Dependent variable

Risk Management Types of Business:

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 Risk
Service
acceptance

Risk Manufacturing
transference Business

Risk
avoidance

Risk reduction

Figure 1
This figure shows the the research's Independent and Dependent

Variables. The IV includes the four main risk management strategies which

are the Risk acceptance, Risk transference, Risk avoidance, and Risk

reduction that implemented by owners and managers to reduce and prevent

risks. At the same time, the DV contains the two types of business: Service

Business and Manufacturing Business. Based on the strategies that

presented in the conceptual framework, it will demonstrate a potential

effectiveness or impact of it to the everyday challenges and unforeseen

events or risks. This framework also shows a study of the comparative

analysis in manufacturing and service industries that will uncover specific

possible risks.

Statement of the Problem

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 This research intends to provide insights on the effectiveness of risk

management strategies specifically for service and manufacturing industries

and comparing both of them through the experiences of selected business

owners in Tiaong, Quezon.

Primarily, the study seeks to answer the following questions:

1. What kind of business did the respondents own?

2. What are the risks that the respondent experiences in:

A. Service Business

B. Manufacturing Business

3. What are the risk management strategies that the respondents used

in terms of:

A. Risk Avoidance

B. Risk Acceptance

C. Risk Transference

D. Risk Reduction

4. What are the risk management strategies that the

respondents use is most effective for:

A. Service Business

B. Manufacturing Business

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Definition of Terms

For a clearer understanding of the words used in this study, the

following terms define in the context of this research.

Benchmark - Benchmarking, comparing a business performance with a

market competitor.

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Business- refers to an organization or enterprising entity engaged in

commercial, industrial, or professional activities.

Business Risk - Business risks entail the potential for a company to

generate insufficient profits due to uncertainties.

Cascading -Falling or flowing in a series of stages or steps.

Detrimental - something that has a negative impact on one's business

External risk- External risks encompass economic events originating

outside the corporate structure.

Internal risk - Internal risk is a risk inherent within the organization.

Legal bases - Legal basis is the foundational framework on which laws and

regulations are established and implemented.

Manufacturing business- any company that uses raw materials or

components to create finished goods.

Market share - Market share is the percentage of total industry or market

sales earned by a company within a specific timeframe.

Risk Acceptance - Risk acceptance is when a business or individual

recognizes that the potential loss from a risk isn't significant enough to

justify spending money to avoid it.

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Risk Avoidance – Risk avoidance involves eliminating any potential harm to

the organization, its assets, or stakeholders, ensuring the risk has no

opportunity to materialize

Risk Reduction - Risk reduction involves minimizing potential losses by

decreasing the likelihood and severity of possible risks.

Risk Transference - Risk transference involves transferring the risk to a

willing third party.

Risk Management Office - A Risk Management Office safeguards human

and physical assets by mitigating the impact of unforeseen events.

Risk Management Plan - A risk management plan outlines the execution of

a project's risk management process.

Risk Management Strategies- are classified as risk avoidance, risk

acceptance, risk transference and risk reduction

Service Business- a company that performs tasks for the benefit of their

customers which include transportation, cleaning, traveling, hospitality,

maintenance or consulting.

Threats - Threats encompass external factors that can adversely impact a

business.

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 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter introduces and discusses the important studies and

research material that are required for the study, which focuses on the risk

experiences of the service and manufacturing industries. Also, determining

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the risk management strategies that they used to assess its effectiveness,

which is divided into four categories: risk acceptance, risk transference, risk

avoidance, and risk reduction. Those who have participated in related

studies will provide support for the findings and help familiarize them with

this current investigation.

Entering the world of business is incapable of avoiding facing or

experiencing threats to their business operations. It could be environmental,

economic, social, or other threats. These dangers might have a detrimental

influence on the firm because of the risks that they may bring. As a result, it

is critical for the business owner and other business professionals to

understand how to decrease and mitigate the impact of these risks by

developing an effective and efficient strategy for each risk.

Risk Experience of Businesses

Market risk is determined by a number of causes focused on the

overall level of market competitiveness (Malega et al., Citation2019). Market

risk is the chance that the whole market might drop, affecting all businesses.

This risk can get bigger when there's a lot of competition in the market.

When many businesses are fighting over the same customers, things can

change quickly and unpredictably. This can make the market riskier. So, the

more competition, the more risk there might be.

Difficulties in business financing and lack of funds are the most

common symptoms of SME financial risk (Bosma et al., Citation2018)

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because most of the operation of the company is financed by the capital of

owners or managers themselves. SMEs often rely on the capital of owners or

managers to finance their operations, which can limit their ability to secure

external funding. This can hinder growth and lead to financial instability.

A higher level of customer satisfaction and loyalty leads to a higher

support for the purchasing processes. The important indicators that may

affect the narrower business environment include the support of business

customers and suppliers (Balan et al., Citation2019).

Artemenko et al. (Citation2017) identified the risk connected to the

taxes as follows: regular changes in tax legislation, level of a tax burden,

new taxes, and differences among regions or business entities. These risks

can create uncertainty, impact profitability, and require businesses to adapt

their operations and tax strategies. Staying informed and managing these

risks is crucial for compliance and financial stability.

People, systems, and processes are all linked to operational

performance in businesses. Legal risk, fraud risk, supply-chain risk, and

environmental risk are also included (Epstein & Rejc Buhovac, Citation2005).

Operational performance in businesses is influenced by people, systems, and

processes. Risks such as legal, fraud, supply-chain, and environmental risks

can impact operational performance. Managing these risks is crucial for

maintaining efficiency and business continuity.

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 For business, risk is regarded as the potential threats to, and unwanted

impacts on, a firm’s operations, reputational capital, market share and

profitability, as a consequence of operational and strategic decisions, and

the exogenous responses of other actors to these decisions (Graetz & Franks,

2016). In business, risk refers to potential threats and negative impacts on a

company's operations, reputation, market share, and profitability. These

risks arise from operational and strategic decisions, as well as external

responses to those decisions. Managing and mitigating these risks is crucial

for business success.

A. Risk Acceptance

Accepting a risk is not a method of mitigating it since it doesn't diminish

its impact. Nevertheless, it's a valid choice within risk management

practices. Accepting a risk is occasionally labeled as the "do nothing"

approach, a notion commonly understood in project management basics.

When formulating strategies, it's crucial to contemplate the ramifications

of opting for inaction. Assessing the consequences of embracing the risk

enables a thorough evaluation, weighing it against alternative courses of

action (Gantz & Philpott, 2013). Risk Acceptance is a type of risk

management that may help one’s business to maintain its well-being with

the presence of risk. However, a business owner must study the risk situation

in order to ensure that the specific risk will not cause a huge loss for the

business entity.

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B. Risk Transference

Risk transference entails transferring the risk to a willing third party.

Numerous companies delegate certain functions like customer service, order

fulfillment, or payroll services to external entities. Often, this is done to

concentrate on core competencies, but it can also serve as a risk

management strategy. For instance, opting to outsource payroll services to a

provider located in a different geographical region than your firm is a form of

risk transfer.

Another instance of risk transference is acquiring insurance or similar

services. To transfer risk, you typically compensate another company to

assume that risk, whether it's an IT firm handling your security or databases,

or an insurance provider covering losses in case of business disruptions

(Snedaker & Rima, 2014).

For Risk transference, a business owner may invest in contracts or

insurance with a third party in order to control or mitigate the possible

impact of a risk in the business by allowing the third party, insurance

company for example, to cover or handle the emergency or problem. This

way the business and business owner will have reduced liability, financial

stability, improved risk management, and peace of mind. Also, it will the

business entity to sustain the focus towards the business operation knowing

that potential losses will be covered.

C. Risk Avoidance

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 Risk avoidance entails getting rid of any danger that might harm the

company, its resources, or its stakeholders, as well as any possibility that the

risk could materialize. In order to prevent the expensive repercussions of

threats, this strategy seeks to deflect as many as possible (RiskOptics,

2022).

Although risk reduction and avoidance sound similar, they are very

different approaches to managing risk. Team (2023) states that risk

reduction aims to lessen the possibility and magnitude of a prospective loss,

whereas risk avoidance focuses with removing all exposure to risk that could

result in a loss. The distinctions between the two strategies will be examined

in this essay.

Regarding the effectiveness of it from the investors' point of view, it was

discovered that risk and uncertainty avoidance have an important effect on

individual investors' intention to invest. These results imply that culture

matters more than anything else and that the degree of risk avoidance

should be taken into consideration when listing stocks on the market (Arshad

& Ibrahim, 2019).

D. Risk Reduction

The term "risk reduction" describes many procedures, safeguards, and

policies put in place with the intention of lowering the risk that employees

and organizations must regularly deal with. The procedure includes

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determining and evaluating hazards in addition to putting in place a number

of procedures and actions meant to lessen them (SafetyCulture, 2023).

According to the Indeagen blog (n.d.), one example of risk reduction is in

manufacturing, namely the danger of products being created to incorrect

specifications. Using a quality management system can reduce the likelihood

of this occurring, making it a risk-reduction strategy.

Strategies to lower mortality risk may involve reducing novelty in several

dimensions, such as permitting another firm to produce and market under

licence, but it is critical to examine the potential negative consequences on

other dimensions (Shepherd, Douglas, & Shanley, 2015).

Effectiveness of Risk Management Strategies

There are numerous risks that a business could face. It is crucial to

understand which of the four risk management strategies is more effective in

a given situation based on prior experiences with risks because they have

various effects, situations, and causes.

Di Ingegneria and Architettura (2020) state that the method's outputs

offer structured data that project managers can use as a gauge to assess an

organization's or project's "risk-taking capability." The method also serves as

a tool to support sustainability strategies while simultaneously accepting the

risks associated with ongoing changes and advancements.

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 The risk acceptance strategy's success is determined by its level; a

greater or lower risk level lowered or raised the possibility of acceptance,

and this relationship remained constant when considering the possibility of

offering non-audit services (Asare et al., 2015).

According to Aven and Vinnem's (2015) study, offshore operations on the

Norwegian Continental Shelf have been using risk acceptance criteria—upper

bounds on acceptable risks—for over 20 years. This study, however,

demonstrated the importance of outlining and debating a risk analysis

regime that is not predicated on the application of risk acceptance criteria. In

general, a risk management strategy emphasizing risk categorization and

evaluation as well as a drive for risk should take the role of the decisions.

Al-Hersh & Saaty (2014) asserted that reduction in apparent risks result in

good relationship with firm and customer and a customer has a tendency of

maintaining relationship with service providers; hence a significant positive

performance is attained by the firm. This statement suggests that when a

firm minimizes perceived risks, it strengthens its relationship with customers.

This leads to customer loyalty and ultimately enhances the firm's

performance. So, less risk leads to stronger relationships, resulting in better

firm outcomes.

Kiragu (2014) asserted that risk reduction practice positively affects

financial performance of an organization through loss control, risk mitigation

and risk transfer to insurance firms. They explained that risk reduction

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practices significantly improve the return on assets of the firm. Risk

reduction practices positively impact an organization's financial performance

and these practices improve return on assets and contribute to overall

financial stability.

Tunel and Alpan (2010) stated that risk avoidance provides an effective

way of managing risk in organizations. This is because by avoiding an

activity, the chances of loss about that activity are eliminated or reduced.

Risk avoidance provides a straightforward and direct approach to managing

risk. It allows organizations to prioritize their resources and efforts towards

activities that are less risky and more aligned with their objectives. By

avoiding activities with inherent risks, organizations can safeguard their

financial stability, protect their assets, and maintain a positive reputation in

the market.

CHAPTER III

RESEARCH METHODOLOGY

In this chapter, research design, locale and population, sampling

technique and data gathering procedure were presented. The researchers

provide this for the reader to know how the study was conducted.

Research Design

This study utilized a Descriptive research design. Descriptive Research

depicts the participants in an accurate way. This method was chosen

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because the researchers sought to explore the insight and perception of the

respondents.

In the Descriptive research design, a researcher is solely interested in

describing the situation or case under their research study. It is a theory-

based design method which is created by gathering, analysing and

presenting collective data. This allows a researcher to provide insights into

the why and how of research. Descriptive design helps other better

understand the needs for the research.

Locale and Population

The respondents of this study are the selected owners or

managers of service and manufacturing businesses in Tiaong, Quezon. The

study's respondents will assist the researchers in compiling the essential and

reliable data on the risks that the business experience and the effectiveness

of risk management strategies that they used in mitigating risks.

Sampling Technique

The researchers selected the 5 service business owners or managers and

5 manufacturing business owners or managers in Tiaong, Quezon as their

dear respondents. The respondents were selected through purposive random

sampling. It is a non-probability sampling, and the respondents were chosen

based on the population's characteristics and the study's goal. This sampling

technique depends on the researcher's judgment when deciding which

people, situations, or events would yield the most useful data for achieving
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the study's goals (Nikolopoulou, 2022). It is a method that is frequently used

in qualitative research to find and choose examples with lots of information

so that the restricted sources are used as efficiently as possible. Only

respondents who owned service and manufacturing businesses are chosen

by the researchers for the current study since they are most qualified to

respond to their questions.

Research Instrument

The researchers will conduct an interview, where in this type of

interview, the researchers created semi-structured questions for the

interview. This instrument was the best one to meet the objectives of the

study. They will also use an audio recorder to record the interview and clearly

interpret the responses of the respondents.

Data Gathering

In gathering data and information from the respondents, the

researchers underwent a series of procedures.

First, they asked questions related to the topic to be answered by the

respondents, who were all business owners of service and manufacturing

businesses in Tiaong, Quezon. This was done to gain information about the

effectiveness of risk management strategies that they use in reducing risks

for service and manufacturing businesses.

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 Second, the researchers asked permission from the respondents

through a consent form, who are selected bank clients, to conduct the study.

The researchers personally asked the respondents, who conducted one-on-

one interviews with each business owner in Tiaong, Quezon.

After conducting an interview, the researchers evaluated and

interpreted the answers to determine the risk that they experience and

effectiveness of risk management strategies that they use.

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