Agriculture Risk management strategies

All businesses face business risk. Farmers face business risk in the form of weather on a nearly daily basis. Most farmers deal with crop insurance and farm insurance to cover the weather but what other forms of business risk do farms face?

Here are a few risk areas for you to consider:

• Operational risks
  • Employee errors
  • Equipment damage or replacement
  • Dealing with toxic or dangerous chemicals
  • External fraud
  • Utilities such as water, power, and gas depletion or interruption
• Human and health risks
  • Physical health
  • Mental health
• Security risks
  • Data
  • Banking
  • Computer records
• Financial risks
  • Currency
  • Interest rate risks
  • Liquidity risks
• Legal risk
• Compliance risk
• Strategic risk
  • Business strategies such as crop rotation or herd management
  • Right sizing to ensure you have the capacity to manage
• Reputational risk
• Location risk
• Technology risk

Looking at your farm operations to determine your ability or resiliency to manage crisis. There are several methods of risk management and we can provide advice and business coaching in many of these areas.