Because the risks and uncertainties within agricultural supply chains are so varied and pervasive, the Agriculture and Rural Development (ARD) team at the World Bank has designed several programs to address the unique needs of client countries dealing with these risks.
Client countries can seek assistance in:
Agricultural Sector Risk Management - The Agriculture Risk Management Team (ARMT) at the World Bank works with governments to identify agricultural sector risks, to quantify them and assess their potential budgetary impacts. An outcome of this assessment process is the development of an agriculture risk management framework, which is used for planning and investment purposes to reduce sectoral volatilities and improve sustainability.
Supply Chain Risk Management - ARMT conducts assessments of risk and vulnerability within agricultural supply chains. These assessments focus on: Types of risk; level and frequency of exposure; severity of potential losses; risk management solutions for individual participants and subgroups within the chain. The analysis uses quantitative data and qualitative information, and the results of the assessments are used for identification of possible risk management solutions.
Weather Risk Management - ARMT works in three main areas to support weather risk management.
- Assessment of feasibility and possible piloting of agricultural insurance products.
- Country-level weather risk mapping to: (i) identify major weather risks; (ii) assess current risk management capacity; (iii) assist governments in designing a risk management strategy for agriculture.
- Assessment of feasibility and potential structuring of sovereign-level agriculture risk transfer products.
Price Risk Management - ARMT provides technical assistance (both at the sovereign and meso levels) in assessing agricultural commodity price risks and designing price risk management strategies. Solutions can be physical and/or financial strategies. This type of assistance is most commonly sought in relation to government physical stocks and operations of parastatals.
Capacity Building and Training - ARMT has developed a number of modular training courses which are available online (www.agrisktraining.org) and on CD-ROM. In addition, ARMT provides training of the trainer packages to regional organizations, specialized academic institutions, and industry associations to enable them to deliver training by themselves on a sustainable basis.
Forum for Agriculture Risk Management in Development (FARMD) - ARMT has developed a network and virtual platform to facilitate the exchange of knowledge, information, and experience across a wide range of agricultural risk management practitioners. This platform, the Forum for Agriculture Risk Management in Development (FARMD), comprises development organizations; private agribusiness and financial institutions; academic, research, and training organizations; NGOs; regional organizations; and other relevant international organizations.