THE ROLE OF THE INTERNAL CONTROL SYSTEM IN RISK MANAGEMENT OF SMALL BUSINESS ENTERPRISES
DOI:
https://doi.org/10.5281/zenodo.21853152Abstract
This article examines the role of the internal control system in managing operational risks in
small business enterprises. The study employs systematic literature review, comparative analysis, expert
survey, and statistical analysis methods. The empirical research was conducted using data collected from 120
small business enterprises operating in Tashkent city and the Tashkent, Fergana, and Samarkand regions of
Uzbekistan. The findings indicate that enterprises with effective internal control systems experience significantly
lower levels of financial and operational risks. Furthermore, a statistically significant relationship was identified
between the level of development of internal control components and the financial stability of enterprises. The
article also discusses the adaptation of the COSO-based internal control framework to the specific conditions
of small business enterprises. The research findings have both theoretical and practical significance for small
business managers, financial managers, internal auditors, and researchers specializing in risk management
and internal control.
Keywords
internal control system, risk management, small business, COSO framework, financial control, internal audit, corporate governance, operational risk.References
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