Aquaculture and Risk Management
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Risk Management is a practical technique for establishing and maintaining profitability of aquaculture enterprises. Aquaculture, like all food producing industries, is a high risk business, not only because of its dependence on the survival of large numbers of living organisms in captivity (many of which are still only one or two generations from wild stocks), but also because of its dependence on the skills of man, the efficiency of machines, and the clemency of the physical forces of nature . However, like all high risk businesses, it is attractive to entrepreneurs because some practices can provide a quick and highly profitable return on investment. For the last two decades, enterprises in aquaculture have been preoccupied with technology. Now chat the industry is rapidly becoming stabilized, and production of a number of important species has focussed on one or two practices, the next decade will become preoccupied with increasing farm efficiency through the application of mod ern management methods. Among these is risk management. The Aquaculture Development and Coordination Programme (ADCP) is producing this guideline document on risk management, which is not purported to be the definitive work on the subject, primarily for the benefit of producers to assist them in becoming more efficient and to reduce their risks.