Agricultural Economics Department


Date of this Version

February 2006


Published in Cornhusker Economics, 02/08/2006. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


What is Risk? Risk is a possible adverse event that has the potential to interfere with a business entity’s financial stability or its ability to achieve its mission. Risk can also have a positive outcome. Srategic planning is the process of selecting the plan that will overcome the possible negative impact and convert risks into opportunities.