Risk Assessment of the Selected Agri-Business Firms in CALABARZON and MIMAROPA

Abstract

The main objective of the study is to assess the impact, probability and the overall magnitude of business risks to the company’s operation. The purpose of risk assessment is to evaluate the identified business risks in terms of operation, financial, marketing and sales, technology and compliance and legal aspects to assist the management in making decisions, based on the outcomes of risks analysis, about which risks need treatment and the priority for treatment implementation. The study utilized the descriptive method and used a survey questionnaire to gather the data. The weighted mean and percentage were computed to determine the impact, the probability and the overall magnitude of business risk to the company’s operation. Based on the findings it was concluded that the magnitude of operational risk resulted to inventory management, credit risk, buyer power, proprietary product and tax risk having the highest weighted mean. It is therefore recommended for the company to adopt a risk treatment which may involve selecting one or more options for modifying risks, and implementing those options. Risk treatment options includes the avoidance of the risk, reducing the risk, sharing or transferring the risk or the company may decide to retain the risk by informed decision. Selecting the most appropriate risk treatment option involves balancing the costs and efforts of implementation against the benefits derived, with regard to legal, regulatory, and other requirements such as social responsibility and the protection of the natural environment.