Risk Awareness Checklist: Financial Risk

Financial Risk

1.	Have you had a recent insurance check-up for health, life, casualty, property, disability, long-term care, and Medicare/Medicaid?	Yes	No

2.	Is your disaster insurance coverage sufficient to replace losses in the event of a disaster?	Yes	No

3.	Does your marketing plan cover your cash flow needs?	Yes	No

4.	Do you use up-to-date financial accounting and control methods?	Yes	No

5.	Are your financial ratios comparable to those of similar operations? (For example, is your current ratio [assets divided by liabilities] at or above 1.5?)	Yes	No

6.	Is your asset turnover ratio above the average for your farm size?	Yes	No

7.	Do you contact your lender at least once a month?	Yes	No

8.	Have you calculated your breakeven cost of production in the last month?	Yes	No

9.	Are your financial projections based on accurate historical data?	Yes	No

10.	Do you have a long-term plan for capital expenditures?	Yes	No

11.	Do you estimate the probability of success or failure of a new venture?	Yes	No

12.	12. Do you have a contingency plan to deal with future risks?	Yes	No