I am interesting in measuring the degree of the adoption of risk management mechanisms by smallholder farmers. Does anyone have an idea how to go about it? Note that in this case I want to measure the degree of both the formal (insurance, derivatives,...) and informal (like community grouping)
ISO 3100: Risk is defined as the effect of uncertainty preventing the agent or organization from achieving the objective. ISO 3100 provides standard approach to risk management. In general, enterprise risk management (ERM) involves 5 steps:
1. Identify context in the organization
2. Identify risk
3. Analyze risk
4. Evaluate risk
5. Risk treatment
The question starts with no. 1 (smallholder farmers) and hinges at the measurement of risk (no. 5). To accomplish the task, one would need to go through all 5 steps. The work would involves both qualitative and quantitative data. Context and risk identifications may be qualitative. Step 3 (risk analysis may involve probability calculation of event occurrence. You may have past data or conjecture that "if such event had occurred"---what would be the effect on the enterprise? This is the evaluation stage involving quantitative analysis. In step 5, did the organization treat the risk? (Yes | No) answer creates discrete data. This is both qualitative and quantitative. If there was a risk treatment, what was the effect? If there was no treatment, what was the impact? Was the effect or impact significant? It is at step 5 and subsequent evaluation of step 5 that you want to achieve. However, in order to get there, it it necessary to follow steps 1 - 4.
REFERENCES: See attached EU Guideline for enterprise risk management. A link to ISO website is also provided below.
http://www.iso.org/iso/home/standards/iso31000.htm
I have been researching adoption of farm safety and health measures by farmers in Ireland since about 1990. All my research papers can be found at my research gate address.
Besides excellent research papers, a survey based research methodology may also help if you can target your survey questions and audience in a way that is appropriate to your research needs. And possibly case study methodology (Flyvbjerg).
Chapter Five Misunderstandings about Case Study Research, Corrected
Chapter Case Study
Dear John,
In adoption to the excellent responses provided by Paul, John and Chris, a further way of determining the degree (or extent) of adoption of the risk management strategies would be though usage of appropriate or existing instruments (as opposed to creating new measures) that have undertaken similar studies (see John Mcnamara’s response as indicated), even if it’s in different industries, you could still adapt / refine the measurement instruments to suit the targeted sample population (smallholder farmers). The suggestion by Chris is also spot on regarding the either or both (triangulation) of the quantitative (questionnaires) and qualitative (case studies) approaches.
I’m attaching an article I came across titled ‘An Investigation of the Extent of Adoption of Enterprise Risk Management (ERM) by Banks in Zimbabwe’ as it might give you some examples of what might be the appropriate data analysis techniques for the measurement of the ‘degree of the adoption of risk management strategies’. Following on from Paul’s description of the steps involved in the ‘risk management’ frameworks or standards such as the ISO 31000; you might wish to itemise the different strategies prevalent in the fifth step, namely ‘risk treatment’ using the ARTMA approach of existing strategies. ARTMA being 1) Prevention (Avoid the Risk); 2) Reduction; Transfer; Mitigate and Acceptance.
The second paper attached is from the ‘International Journal of Business and Management Invention’ titled ‘Promoting ‘Enterprise Risk Management Adoption in Business Enterprises: Implications and Challenges’ is meant to provide you with some background information on some of the adoptions challenges and could form part of some general reading.
John, also refer to some of the examples (articles) specific to ‘smallholder farmers’ that I had previously provided in response to your question namely ‘What are some of the factors that affect the adoption of risk management by smallholder farmers?’
It might also be interesting to compare the different rate of risk management adoption strategies between the ‘formal’ and ‘informal’ groupings given that their perceptions of the identified risks would somewhat be different.
All the best with your research
Nicholas
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