Enterprise risk management in integrated crop-livestock systems: a method proposition

Abstract

Integrated crop-livestock systems (ICLS) are currently promoted agricultural production systems that aim to use better resources through production integration and intensification. While this system reduces some risks, it adds complexity and new risks to businesses due to interdependence between the agricultural modules. To deal with these issues, integrated risk management is required to reduce the effects of risks and to take advantage of the opportunities of an ICLS. Generically, enterprise risk management (ERM) meets this need by proposing comprehensive and coherent risk management, instead of managing agricultural module risks individually. However, there is a need to customize the ERM approach to ICLS. Therefore, the current study aims to develop a method to manage risks for ICLS based on ERM, integrating the management of risks and aligning risk management with the strategic objectives. A literature review, a pilot study, interviews with experts, four case studies and 20 practitioners supported the method development and evaluation through three versions. As a result, the method identifies and relates risks through process mapping with a qualitative and quantitative analysis of their impacts, determines risk responses based on willingness to take risks, and helps identify processes to control, communicate and monitor the risks. The method also stimulates the implementation of ICLS in market-oriented farms, providing an approach to increase the chances of ICLS success. The main difference from previous research lies in the integrative management of multiple risks, the alignment of risks with strategy and the consideration that a risk might be considered an opportunity.

Optimization of the Integrated Farming Resources to Increase Farmer’s Income: A Case Study in Indonesia

“…Also, it indicates that the concept of the integrated farming of food crops and cattle had risk potency. It was in line with previous research by Corrêa et al (2018), stating that some underlying risks in the integrated farming system are production, business, financial, and damage (Corrêa et al, 2018) Based on Table 01, the largest value of the reduced cost was the farming activity of soybean-the uncultivated-the uncultivated + and cattle (X 6 ). It was due to the existing uncultivated area system for two planting seasons, so this farming system was ineffective in achieving optimal production.…”

Sistem Manajemen Risiko Produksi Teh Hitam Pada Perusahaan Perkebunan Besar Negara

“…Sistem manajemen risiko pada perusahaan adalah suatu pendekatan yang terintegrasi dalam pengelolaan risiko-risiko sepanjang rantai produksi perusahaan. Bagi perusahaan yang bergerak di sektor pertanian, faktor alam dan faktor pasar memberikan pengaruh yang sangat besar baik secara langsung maupun tidak langsung (Faria Correa et al, 2018;Wang et al, 2009). PT Perkebunan Nusantara (PTPN) 8, sebagai perusahaan perkebunan negara yang memproduksi teh hitam di Indonesia menghadapi persoalan penurunan produksi sebagaimana juga terjadi pada produksi secara nasional (Aulia et al, 2022).…”

“…Ketergantungan antar sub-sistem dalam proses produksi pertanian menimbulkan kompleksitas dan risiko bisnis dalam operasionalnya. Sumber persoalan dapat menjadi risiko yang bersifat sistemik, dimana dapat menyebar ke bagian lain dalam dari sub-sistem produksi perusahaan pertanian (Faria Correa et al, 2018;Singla & Sagar, 2012).…”

“…Manajemen perusahaan perkebunan berdasarkan struktur kesiteman, memiliki peran yang sangat vital. Risiko finansial perusahaan sebagaimana disebutkan oleh Behzadi et al, (2018) dan Faria Correa et al, (2018) menjadi titik ungkit yang krusial dalam pelaksanaan operasional proses budidaya, proses pengolahan dan pengembangan kapasitas SDM pada keduanya. Risiko finansial perusahaan menjadi persoalan yang sistemik jika dibiarkan terus menerus.…”

Análise econômica de um sistema de Integração Lavoura, Pecuária e Floresta (ILPF) no município de Brotas-SP: um estudo de caso com economia de escopo

“…Sistemas integrados consistem em interações entre produção agrícola e pecuária que são explorados ao mesmo tempo e espaço, porém são sistemas complexos que exigem conhecimento técnico, econômico e multidisciplinar (FARIA, et al, 2018).…”