Farm Business Risk Profiles

A risk profile describes the combination of a business’s ability to incur risk and an individual’s personal risk attitude. Understanding your business’s risk profile can improve communication and result in better decision making.

Key points

• An individual’s risk attitude can be classified as wary, neutral or daring.
• A business’s risk capacity can be identified as low, medium or high.
• An individual’s perception of, response to and management of risk heavily influences their approach to making decisions.
• A practical and realistic approach is important so individuals, families and businesses understand their own risk profiles and the impact on the overall management of the business.

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Region South

• 386.55 kb Farm Business Management fact sheet: Farm Business Risk Profiles A risk profile describes the combination of a business’s ability to incur risk and an individual’s personal risk attitude. Understanding your business’s risk profile can improve communication and result in better decision making.