Do You Know What Risks Your Farm Is Facing?

What is the best way to protect yourself against risk? If you answered “knowing what risks to prepare for”, then you are correct. The largest obstacle to this preparation today is that farming in South Africa faces so many risks that it’s difficult to keep them all straight.

Good news, though! There is a way to discover and prepare for the risks you may face: risk management.

What is risk management?

Risk management, simply put, is a process whereby businesses identify and assess the financial risks a business faces before they arise. From there, the process moves towards controlling these risks by putting measures in place to remove or reduce these risks, as well as preparing to deal with them effectively if they should ever arise.

Example: Dairy farmers know that they face the risk of losing livestock to theft or death, but what many fail to consider is the financial risk involved should you next batch of milk be rejected by the buyer because it contains steroids or some other trace of medication. It does happen though, and the resultant penalties for spoiling all the milk in the truck that picked this up can reach up to hundreds of thousands of rands.

Are all risk managers equal?

Definitely not. While all qualified risk managers and insurance brokers who offer this service should be good at what they do, not all of them are knowledgeable about the specifics of a niche market like agricultural products.

How do I find the right experts?

It’s as easy as checking the AgriFoodSA directory (also a great place to find and contact agricultural services and products providers of other varieties). For instance, have a look at the directory page for Marsh, a global leader in insurance broking and risk management solutions. They operate in more than 130 countries, and their presence on an trusted agricultural directory tells you that Marsh is able to assist clients in this industry.

Interested in learning more or joining the directory?

Great! Simply grab our contact details here or fill out the contact form and we will see what we can do for you.

 

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