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Introduction to the Human Resource Risk Pillar of Your Farm Business

This is an introduction video for the Human Resource pillar in the “5 Pillars of Risk Management” series. Of all the risks that are associated with the farm business, human resource risk is the most important. Studies have shown that at least 80% of businesses do not transfer because of a communication or conflict issues, therefore it’s essential for you to ensure you understand the human resource risks on your farm operation.

Though large corporations have human resource departments and realize that this is a much needed component of their business, farmers often go at it alone without any human resource background at all. From employee reviews to how to navigate your way through the growth of your farm business, having a human resource plan in place can be a very valuable asset.

Watch Reg Shandro explain what a human resource risk is and what you can do to minimize it on your farm operation.

This workshop was funded in part by the Agriculture & Food Council of Alberta

Introduction to Risk Management on Your Farm

When you’re a business person farming you know that you’re not in a riskless business. Risk is a four letter word but there are many things that can assist you in managing these risks.

There are 5 pillars of risk which you need to understand in order to successfully manage your farm business. You need to be able to understand them both separately and together. The 5 Pillars of risk on your farm are:

1. Market Risk;

2. Legal Risk;

3. Human Resource Risk;

4. Financial Risk; and

5. Production Risk

Warren Buffet once said that when making a decision with regards to your business, you shouldn’t be asking yourself how much money you can make,  but instead you should ask how much money you can lose. This change in mindset is important when evaluating the risk on your farm business.
This is an introduction video for the “5 Pillars of Risk Management”series. Watch Reg Shandro explain what risk management is and what you can do to minimize risk in your agricultural business.

For further introductory notes, please refer to the following resources:

OECD: Risk Management in Agriculture

Managing Risk in Agriculture: A Holistic Approach

Managing Risk in Agriculture (Purdue University)
This workshop was funded in part by the Agriculture & Food Council of Alberta