4
Components of Risk
Probability
of 5%
Probability
of 15%
Probability
of 60%
Probability
of 15%
Probability
of 5%
EVENT
Cause/Source
Hail
Odor lawsuit
Disabling farm accident
Surplus Production
Increasing interest rates
Potential
Outcome
#1
Potential
Outcome
#2
Potential
Outcome
#3
Potential
Outcome
#4
Potential
Outcome
#5
[minor nuisance]
[catastrophic]