•••
F UT UR E F O CUS
risks must be managed and which ones can
be tolerated for the moment. If you decide to
tolerate a risk, you take no action. This is often
based on how urgent or cost-effective the risk
mitigation exercise might be. If one chooses
to tolerate a risk this does not imply that its
ignored. Monitoring it is important as future
changes could make it no longer tolerable!
• Treat – You are choosing, ahead of the game, to
take action in the hopes of reducing your vulnerability and minimising the negative impact.
• Transfer – This strategy moves risk away from
your business directly. E.g. using crop insurance
to buffer your business in case of crop failure.
• Termination – is the least popular method of
dealing with risk. It requires making harsh decisions when the forecast of a situation is gloomy.
E.g. when a farmer decides to stop planting
maize, it is seldom because he hates planting
maize – he needs a lower risk path to keep his
operation afloat.
Resilience requires that we are alert, flexible and
adaptable. It means we seek out relationships with
others who can support us through tough times.
It is as good to surround oneself with like-minded
friends as it is to build constructive relationships
with a network of people who are at the cutting
edge of new technologies, breakthroughs and new
innovations which could make the difference to
your survival and success. No one is self-made.
In the words of Isaac Newton, “We stand on the
shoulders of giants”.
Monsanto held their annual farmers’ days
around the country recently and for the first time
the whole family was invited. We went, not only
because it was a treat to go as a family, but because we have learned how important it is to stay
informed about up-to-the-minute technology.
This is yet another aspect of risk management for
the farmer. Learn as much as you can about new
technology and innovations and decide which your
business can afford to implement and which you
will work towards over time.
Today’s producers are businessmen firstly and
farmers secondly. This is not likely to change any
time soon. Continued success is going to be determined largely by the ability to anticipate and prepare for the future. Risk management is essentially
about great leadership, the art of building resilience
into our businesses and instilling a sense of hope
and possibility, even when the going gets tough.
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Apr/May 2016 • SENWES