Take control of your risks before they take control of you

Risk has two key components: how likely it is to occur, and the severity of its occurrence. Understanding and managing risk is crucial to the survival of your business, says Peter Hughes.

- Peter Hughes

Risk is the likelihood of an undesirable event occurring with negative impact on your business and/or family. It has the potential to harm both you and your business.

If you are a farmer, you are operating ina high-risk environment. Your crops are vulnerable to yield destruction due to drought, flood and storm. You face extreme market volatility driven by local and global supply-demand dynamics and trade policies.

Pests and diseases can wreak havoc, and they mutate into new forms that threaten your crops and livestock. Input costs for essentials like fertiliser and fuel fluctuate widely due to exchange rates, trade agreements and subsidies.