Strategic Risk Assesment Through Scorecarding
From Seed World Magazine - Our previous article developed a broad taxonomy of the risks faced by an agribusiness and noted why they should understand both tactical and strategic risks. In a competitive environment, it is important for a firm to be willing to take certain risks if it wishes to create long-term value. Risk has both an upside and a downside; focusing only on risk avoidance could cause a firm to overlook opportunities to create value. To truly understand how to manage risk, firms should start by conducting a critical assessment of each risk they face. This article describes an approach to do so.