Strategic Risk Assessment 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.

RELATED POSTS:

Common Pitfalls in the Decision Making Process

Some business decisions are simple — we make them without much thought or deliberation and carry on as normal. Other larger decisions such as new ventures, expansions, acquisitions, or strategies come with the potential to be a game-changer for our organizations. These decisions carry a heavy weight of uncertainty and risk.

Corporate Social Responsibility’s Impact on Risk Management in Agribusiness

Corporate social responsibility (CSR) is continuing to grow in importance to investors and consumers alike. Both groups are increasingly avoiding doing business with firms that conduct themselves in a manner consumers and investors deem undesirable. In response, managers have been and must continue adapting their firms to be more responsible or they could face real financial repercussions. But rather than viewing CSR as an unwelcome expense, managers would be better off viewing it as an opportunity to differentiate themselves from their peers. Similar to the growing consumer consciousness of what pesticides and production practices are used to make their food and the price premium paid for certified organic, CSR may offer benefits to farmers if they choose to embrace this changing environment.

Managing Cybersecurity Challenges

There has been an increase in the implementation of new technologies such as cloud storage, data analytics and e-commerce platforms across all industries. This translates to a great deal more information being stored by companies, with a good portion of this information being data on customer or firm strategies. With this increase in data utilization, there is a subsequent increase in cybercrime specifically targeting small- and medium-sized enterprises (SME). These midsize companies are being targeted, as often times, they are just big enough to have sizable assets and typically do not use the latest measures in cybersecurity defense. This lag in adoption of security technology amplifies the threat SMEs face.