Directions for Optimizing The Activities of Textile Enterprises Through Risk Management

Textile and garment sector is one of the major sector in emerging market economy but are very sensitive due to the risk associated such as supply chain disruption, market price areas and financial crisis risk. Yet despite this significance, there is little understanding of how systematic risk management can be applied in a dual role as a transactional guardrail and a directive enabler of global enterprise ambition for success. To this end, and keeping this in mind, this work has the purpose to recognize the Risk Assessment and Minimization and the Permanent Work as a Task in the Sustainability and Competitiveness for Textiles based companies. A qualitative approach was employed to integrate the theory into financial diagnostics and into empirical testing. This estimate based on Z-score and  Springate modelling on a sample of textile firms gives an idea of their financial strength and further more SWOT and scenario analysis allows to obtain deep insides for the operational weakness. The verdicts highlight variability of corporate financial strength:Companies with large liquid assets, retained earnings, and balanced capital structure remain in a strong financial position while highly geared companies are at greater risk of default. Resilience and profitability were driven by risk-based behaviours (digital surveillance, diversification of suppliers, development of early-warning systems). Conclusion Findings indicate that companies with increased efficiency, decreased costs and more flexible to market vicissitudes adopted a dimensionality of integrated risk model. It also shows that linking risk management to corporate governance transforms risk management from a mere defensive mechanism to an enriching corporate process. We propose that policy-makers and enterprises combine to build up long term risk-based decision fabric system, digital monitoring platform and collaboration cluster to strengthen the textile competitiveness.