Financial crisis, economic instability, price volatility ... agribusiness firms face an increasing number of challenges. As the preferred partner for industry players, we wanted to provide practical insight into the evolution of risk assessment and management during this particularly turbulent period. Additionally, we wanted to offer a prospective view by highlighting the risks faced by organizations over the next 3 years.
The first edition, published in 2008, focused on the complexity of risk management in this sector, identified the main areas of caution and provided a general benchmark on the actions put in place.
In the second edition, published in 2012, we interviewed industry leaders regarding key, current issues, including: general organization of risk management, raw materials, purchasing and supply, finance and regulation.
- 92% are very or even extremely averse to risk.
- 74% want to strengthen their internal controls and risk management over the coming 3 years, compared to 68 % in 2008.
- 57% consider external risks (suppliers, markets, commodity prices, energy costs ...) as one of the main incentives for implementing and monitoring a risk management system.
- 50% feel highly affected by issues regarding procurement and supply of raw materials.
- 48% consider supply management as the main risk factor in the next 3 years. Profitability due to stiff global competition comes just after.