Evaluating Risk

When it comes to risk analysis, perceptions are everything.

Studies show that the more vague or ambiguous the understanding of all the elements in a risk-management situation, the more likely decision makers are to base their decisions on emotion or instinct, rather than fact or analysis. For that reason, when evaluating risk, it is essential to follow a systematic assessment and analysis process in order to arrive at a proper risk management strategy.

The Risk Analysis/Assessment Process

Adapted from Assessing Risk in Production Agriculture, Centrec Consulting Group, 2010.