Rural Business Risk Management
In many aspects of rural and agricultural businesses, resilience and diversity is key to managing risk
Across all types of rural and farm business, a significant proportion lack any risk management strategy. Unfortunately, this is often coupled to little desire to know more about managing risks and many don’t see much of a benefit to their businesses from undertaking risk management. Frequently when business owners are forced to sit down and look at their business there are more risks than meet the eye, for example, income volatility, productivity, staffing, succession, finance and asset security.
A good business plan will provide a business with information and focus; it can also highlight weaknesses in how you plan and run your farm. This can often provide helpful insight for later improvements and investments, particularly when looking at sensitivity analysis of your farm taking into consideration any future economic prospects for your sector(s). The business plan should focus on your short-term and long-term aims, timescales for achieving your aims, who will be involved, how you will manage finances and more particularly identify strengths and weaknesses of the farm’s characteristics.
Moule & Co can assist in managing risk to the farming and rural business, be a ‘sounding board’ and generally be that ‘second pair of eyes’ to identify how risks to the business can be minimised, by analysing financial data and assisting with benchmarking.