Identify at least six risks inherent in the case study below.
Evaluate the probability and impact for each risk.
Describe the risk management strategies you recommend for each risk.
For each strategy described in step 3, list the risk management category to which it belongs: Accept, avoid, or mitigate
Describe recommended contingency plans where applicable
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Be sure to present your analysis in a useful, readable format.
Case Study:
The Central Plains food cooperative has 12,000 independent farmers and was founded in Tofield Alberta, in 1984. The farmers banded together so they could buy supplies and tools in bulk, reducing costs, as well as to negotiate prices with retailers when selling their produce and other consumables. The market for the products has changed significantly with the emergence of supermarket chains and the growing demand for large quantities of product organically produced.
A team has been formed to create a vision and translate that vision into guidelines for farming practices that will help the farmers provide the large quantities of product the supermarkets want to buy and for those products be qualified as organic. The vision is to become the ‘Primary supplier of bulk, organically home grown and raised products’. They want to grow the farmer membership by 15% and market share in organic products by 5%.
The diverse group of farmers who are members of the cooperative, use a wide range of farming techniques and methods, some of which have been used by families for generations. They understand the market has changed and are eager to participate but are worried the changes could be expensive and time consuming. The farmers are reluctant to move too quickly, as that means committing time and effort to learn new methods of farming, for a market that could be a ‘fad’.
Analyze potential risks inherent in the proposed changes. Hint: it’s a good idea to start by identifying the farmers and Central Plains food cooperative goals for the change. This will help focus your risk assessment efforts.
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