Abstract
most countries, manufacturing is typically a key driver of economic expansion and progress, and South Africa is no exception. Organizational competition pressures are a result of the rising globalization of manufacturing in both home and foreign markets. In a rapidly changing business world, risk management is no longer an option but a necessity. Despite the importance of proper risk management in the manufacturing industry, the current studies in South Africa focus on risk management in the construction industry and project management. To effectively manage risks, manufacturing firms need to understand the critical success factors and the risk management tools. Surprisingly, little academic attention has been devoted to risk management in the manufacturing industry in South Africa. To fill this gap, the study aimed to determine the critical success factors of risk management in the manufacturing industry and identify the risk assessment tools commonly used. A quantitative research approach was selected for this study, with an online questionnaire survey as the research instrument. The critical success factors identified by the participants include risk culture, organizational culture, communication, commitment and support from top management, leadership, and compliance. The participants also identified risk measurement techniques such as root-cause analysis, SWOT analysis, environmental risk assessment, and failure mode effect analysis as commonly used in their respective companies. The findings of this research study can be utilized by manufacturing industries to effectively mitigate potential risks. By implementing the identified critical success factors and utilizing the commonly used risk assessment tools, manufacturing industries can improve their competitiveness and ensure a comprehensive approach to risk management.
Key words: risk management; critical success factors; risk assessment tools; manufacturing industry