MANAGEMENT

Detailed explanation-1: -Any production related activity or event that has a range of possible outcomes is a production risk. The major sources of production risks are weather, climate changes, pests, diseases, technology, genetics, machinery efficiency, and the quality of inputs.

Detailed explanation-2: -Production risks relate to the possibility that your yield or output levels will be lower than projected. Major sources of production risks arise from adverse weather conditions such as drought, freezes, or excessive rainfall at harvest or planting.

Detailed explanation-3: -Production risk derives from the uncertain natural growth processes of crops and livestock. Weather, disease, pests, and other factors affect both the quantity and quality of commodities produced.

Detailed explanation-4: -There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.