RISK MANAGEMENT IN RURAL ORGANIZATIONS IN EAST AND NORTH AFRICA


 


      There are various risks in most rural organizations depending on geographic areas and locations just like in Near East and North African Region (NENA) they have studied the entire region and the risk involved in Agriculture, Management, Marketing and Financial Risk that they are going to face in the future. It is their primary objective to create a more valuable project evaluation projection to lessen or eliminate various types of risk that they have been facing in the recent years. The Organization (NENA) has undertaken several studies to better identify the current risk management causes and solutions from different areas of their studies and other relevant and current issues. In July of 2010 Banks, Cooperatives, Government and Non Government Organizations have shared their part and ideas collectively in order to create various illustrative examples and recommendation of their view in risk management.


      The contribution of such organizations is basically emphasizing on projects that includes risk management in rural areas including Collateral Management risk and how they can recover and sustain revolving funds for future loans for most farmers this also includes good governance in market and farmland, banking system, recovery risk management and Information Technology is also included since there are various types of risk involved here. In an overall discussions the areas are partially specify that is wide and comprehensive that the expression and involvement of such risk management may need to be documented in order to implement a more reliable and significant risk management resolution that will be implemented in the next few years.


      Multiple Strategies and various determinants are expected to arise within the next few months in this current year of 2011knowing that the trends are continuously changing especially in the field of agricultural and financial risk. Most organizations have collectively identified the following determinant to focus on and to provide an overview of the most adequate management risk that should be given proper focus needed for rural areas. According to the most recent studies using different research design and analysis they have concluded the integrated most important risk management in the following rural areas in Near East and North African region.


      Administrative Risk – the organization (NENA) have identified some banks in most of this regions that there are government banks who have lack of qualified and devoted elected leaders that have been controlling such banks in a weak manner that they have neglected their positions without competitive advantages and innovation, low in initiative and improvement that even demoralize such banks, they have low banking spirit and their employees are overworked. However the names of the personnel involved has not been identified to give them a chance for proper investigation. In this case the risk involved is eliminated by selecting various qualified employees that can manage such banks as the needs arise or if these persons are found guilty to neglect their position.  


      Agricultural and Climatic Risk – the unfavorable weather condition in most parts of the regions has been presently abnormal these days and naturally that there are crops have not grown the way it should be. The production process involved in farming has been prevented because of droughts then sudden thunderstorm and floods from different geographic location and this is probably the most risky part of their plan. Health problem, accidents, death, low production, famine and scarcity has been the usual effects of this dilemma however the risk management system has found various determinants and still they longed for such solutions that have not been practically identified. The circumstances that may arise is totally unpredictable only a few given measures has been given like safety measures, awareness and preparedness, funds for calamity purposes and other international risk reduction management participation that has been involved including first aid given and agricultural recovery education.


      Political and Social Risk – These two dual risks is still involved in risk management studies of (NENA) although it is not given priority in the latter years since it should be in the government initiative that should enforce such risk reduction in political struggle but it can be included and the participation of most citizens are required if they have found officials and government leaders or employees who are performing scrupulous activities including graft and corruption, red tape etc. they should report the case immediately if they have found certain participation in any government agencies. The risk involved in political and social forces have become epidemic that certain government agency and organizations have been losing their financial capability that should have been given for the public use in farming and infrastructure. This has created so much risk in the government funding and most of the time it was the citizen and their way of life have suffered. Risk Management involved here has been thoroughly enforced every year but the risk has become a political and social illness.


           


        


 



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