Managing Risk

You can avoid risk simply by choosing not to engage in agritourism activities altogether. By using the risk assessment process, you may also decide that a specific activity has more risk associated with it than you want to take on. Therefore, you can decide not to offer that activity. This is explained in table 1.

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  1. You can reduce risk by implementing preventative measures and procedures. For agritourism enterprises, customer and employee safety is one area where risk reduction can be effective. A proactive approach to safety for customers and employees should be a major priority.
  2. Another method for managing risk is to transfer risk to another party. The most common way is through insurance coverage. An insurance company accepts risk on your behalf in return for compensation in the form of premiums. In return, the company will reimburse you for damages, if incurred, according to the details of your policy. However, it is not always likely that you can transfer ALL RISKS.
  3. You decide to offer the activity. In this case, you have decided to accept risk and should take action to prepare for loss or damages in other ways. For example, you can create an emergency fund to pay for expenses you might incur as a result of the risk.

 

Use this video for you management team training to help them understand the concept of prepare, respond, mitigate, recover, and improve practices. (NOTE – This video is intended for the management team, not for employee training.)

 

Next Chapter: Safety vs. Emergency Prepardness