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Within the internationally recognized field of agricultural risk assessment and management, risks can be evaluated according to three basic criteria :

  • 1. Impact:   In other words, how severe will the risk event be if it actually happens? Some risks can destroy the whole year's farm income and even destroy assets; other risks are milder in impact.
  • 2. Likelihood:   How likely is this risk to come about? Some risks are rare and unpredictable, others are more likely to happen.
  • 3. Manageability:   Independent of how severe or how likely a risk is, some risks are out of the control of the farmer, others can be handled to a large or small degree. It makes sense to prioritize scarce resources on risks which can actually be managed.

This information in this presentation is best used in conjunction with the other Risk Management materials provided by Steve Hodges, Managing Director/Consultant, African Agriculture Risk Management Services, Uganda.  Steve spoke at the 2012 ECHO International Agriculture Conference