Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/5719
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dc.contributor.authorHardaker, J Brianen
dc.contributor.authorLien, Gudbranden
dc.date.accessioned2010-04-28T16:44:00Z
dc.date.issued2007en
dc.identifier.citationAustralasian Agribusiness Review, v.Paper 6, p. 75-93en
dc.identifier.issn1442-6951en
dc.identifier.urihttps://hdl.handle.net/1959.11/5719en
dc.description.abstractTo concentrate on treating the most serious risks, methods of business risk management usually seek to identify the main risks and to assess their relative importance. Risks are typically assessed in terms of their chances of occurrence and the severity of their consequences. The assessments may be performed by qualitative, semi-quantitative or quantitative analysis. This paper is focussed on quantitative methods, requiring assessments of specific probabilities and values for consequences. There are problems with conventional risk assessment. For some risks there may be no specific adverse event. And often the severity of possible adverse consequences is uncertain. Typically, neither the decision maker’s risk aversion nor possible upside outcomes are taken into account. Moreover, the usual one-at-a time approach means that stochastic dependencies and scope for risk spreading through diversification are also ignored. Risk assessment by certainty equivalents of losses (CELs) is proposed to overcome some of the above-mentioned limitations. The calculation of the CELs is explained and illustrated with agricultural business examples, before limitations of downside risk assessments and the effects of ignoring upside benefits are addressed. An extension of the approach to a portfolio setting is described which accounts for stochastic dependencies and diversification benefits. The suggested approach is extended to deal with the risk of bankruptcy.en
dc.languageenen
dc.publisherUniversity of Melbourneen
dc.relation.ispartofAustralasian Agribusiness Reviewen
dc.titleRationalising Risk Assessment: Applications to Agricultural Businessen
dc.typeJournal Articleen
dc.subject.keywordsAgricultural Economicsen
local.contributor.firstnameJ Brianen
local.contributor.firstnameGudbranden
local.subject.for2008140201 Agricultural Economicsen
local.subject.seo2008919999 Economic Framework not elsewhere classifieden
local.profile.schoolEconomicsen
local.profile.schoolEconomicsen
local.profile.emailbhardake@une.edu.auen
local.output.categoryC1en
local.record.placeauen
local.record.institutionUniversity of New Englanden
local.identifier.epublicationsrecordune-20100423-155745en
local.publisher.placeMelbourne, Australiaen
local.format.startpage75en
local.format.endpage93en
local.peerreviewedYesen
local.identifier.volumePaper 6en
local.title.subtitleApplications to Agricultural Businessen
local.contributor.lastnameHardakeren
local.contributor.lastnameLienen
dc.identifier.staffune-id:bhardakeen
local.profile.roleauthoren
local.profile.roleauthoren
local.identifier.unepublicationidune:5857en
dc.identifier.academiclevelAcademicen
local.title.maintitleRationalising Risk Assessmenten
local.output.categorydescriptionC1 Refereed Article in a Scholarly Journalen
local.relation.urlhttp://www.agrifood.info/review/2007/en
local.relation.urlhttp://www.agrifood.info/review/2007/Hardaker_Lien.pdfen
local.description.statisticsepubsVisitors: 185<br />Views: 184<br />Downloads: 0en
local.search.authorHardaker, J Brianen
local.search.authorLien, Gudbranden
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