3.1 Terms
A tool that an organization or individual can use in order to identify risks, analyze them, and then create steps to reduce or eliminate the risk factors.
What is Risk Management Plan?
The uncertainty pertaining to human involvement that can affect a business, such as human health or personal relationships.
What is Human Risk?
loss of profit or insurance.
What is a direct loss?
Insurance that offers protection from yield loss using project prices to determine the insurance coverage.
What is Yield Production Insurance?
The process of enlarging a range of production in an operation.
What is Farm and Agribusiness Management?
The proper spelling of the word, Risk
What is R I S K?
The uncertainty that occurs when a person or business is obligated to pay back a debt after money is borrowed.
What is financial Risk?
The availability of liquid assets to a market or company
What is liquidity?
a type of coverage that protects your physical assets—such as a home, business, or personal belongings
What is property insurance?
A single, legal entity that is owned by shareholders and governed by an elected board of directors who have no personal liability.
What is a corporation?
The effect of uncertainty on your set objectives
What is Risk?
The steps taken to identify risk and the effectiveness of the risk management process
What is a risk audit?
The amount of a product that this produced.
What is yield?
a federally subsidized insurance program in the U.S. that protects farmers against unexpected crop yield losses and revenue declines due to natural disasters, disease, and market fluctuation
What is Multi Peril Crop Insurance?
A business owned by one person
What is a sole proprietorship?
The five steps to manage any type risk: Identify, prioritize, plan, implement, and monitor
What is Risk Management Process?
The uncertainty pertaining to the price of inputs needed to produce commodities, as well as the price producers will receive at time of sale.
What is Market Risk?
(Y(B-F))*A; Y = expected yield per production unit, B = Breakeven price per bushel, F = lowest price for the commodity, A = number of production units.
What is Payoff Matrix?
An arrangement between a company and an individual where an individual is protected from different hardships in return for paying a premium.
What is insurance?
Technology that reduces the need for human involvement
What is automation?
Understanding price change and weather fluctuation and being able to work around it and find solutions.
What is Risk Management?
The uncertainty pertaining to the growth of crop and livestock, as well as the quantity and quality of those products affected by outside factors such as weather and pests.
What is Production Risk?
(Y(B-F))*A; Y = expected yield per production unit, B = Breakeven price per bushel, F = lowest price for the commodity, A = number of production units.
The process of enlarging a range of production in an operation.
What is diversification?
State in which supply of a good or service equals the demand for that good or service in the market.
What is Equilibrium?