5968689
Description
Flashcards by Sandra Leak, updated more than 1 year ago
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Created by Sandra Leak
over 7 years ago
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| Question | Answer |
| The following flashcards will show you "potential risks". Before clicking on the card to read more detail about the risk, think of what you already know... have you identified this risk in your business; what is the potential impact of this risk; have you put strategies in place to manage the risk? | Some possible and potential risks could include: |
| Theft | This can relate to theft of stock or equipment. It can be theft by the general public or even theft by employees. You can get insurance to cover this but some types of theft would be very expensive for some businesses. Good security is a starting point to prevent theft. |
| Natural Disaster | Most Natural Disasters can be insured against. It is necessary to check what you are insured for though. Is the insurance just for the physical losses or are you covered for loss of income while you are repairing or replacing the damage? What about the customers you could lose while you are temporarily out of business? There may be some other things that you can put in place to ensure that you can continue with business as usual as soon as possible after a natural disaster. |
| Health and Safety | Not only can you be off work through an accident or work related illness, but you could also be held liable by Occupational Safety and Health. This could cost you if you are found to have been negligent. You must have a health and safety policy in place along with resources and practices that support it. |
| Personal Health Risk | The physical and mental health of you and/or your family members are first and foremost. Farming has been listed as one of the ten most stressful occupations in the world and researchers from Europe, USA and Australia found that farmers experiencing a high demand work environment coupled with low control and low social support can develop stress and strain, mental health problems, and depression. Unrelenting physical work demands are just one reason failing personal health can be a risk. |
| Employment risks | What happens if you employ the wrong person for the job? What if they end up costing you more than they make for your business? What if they become disgruntled and take a personal grievance out against you? There are three parts to this. The first is to have good solid recruitment processes in place to increase the likelihood of selecting the right person in the first place. The second is to have good induction, training and performance monitoring systems. Thirdly, always check with an expert or the Employment Relations Service when making decisions that may lead to personal grievances. |
| Pest and Disease | Having effective preventative pest and disease management practices is crucial. Depending on the type of agribusiness you have, limiting the spread of pests and diseases is a priority. Using an Action Plan template is a good tool to proactively plan before disaster strikes. |
| Pricing Fluctuation | Price movements can follow predicted seasonal or cyclical trends. Many times, however, supply or demand will change unexpectedly and, in turn, affect the market price. If crops are planted or resources are used to raise livestock, there is no certainty to what prices will be obtained for production. In situations of low rainfall, production of crops is often reduced &, as a result, prices rise. |
| Climate / Weather | The drought has a major effect on our agricultural systems in New Zealand. The drought has shows us how much New Zealand relies on our natural resources As stated in the NZ Herald, Feb 2015…”Those finding it especially tough this summer were farmers burdened with extra infrastructure costs after switching to dairy, or those exhausting their irrigation water takes” Effects of the drought are far reaching & it is crucial stress levels are managed during those times as best you can. |
| Technological risks | What happens if machinery breaks down? How long will it take to get that spare part? Do you have a backup plan? If you are using a new technology in your agribusiness, will it perform as expected? Will it actually reduce costs and/ or increase production? |
| Financial risks | What is your debt servicing capacity like? Do you know liquid, solvent, and profitable your agribusiness is? What are your terms of trade? This risk can be caused by uncertainty about future interest rates, a lender’s willingness and ability to continue to provide funds when needed, and the ability to generate the income necessary for loan repayment etc. |
| How did you do? Have you identified risks which need to be addressed further? | And finally... WHO will be responsible for managing these risks? |
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