AquaHarvest Farms — Risk Management Framework
AquaHarvest has developed a comprehensive risk management framework to identify, assess, and mitigate the key risks associated with the business. The risk register below outlines the principal risks, their likelihood and impact ratings, and the corresponding mitigation strategies.
Section 13 · Business Plan
Risk Management Framework
AquaHarvest has developed a comprehensive risk management framework to identify, assess, and mitigate the key risks associated with the business. The risk register below outlines the principal risks, their likelihood and impact ratings, and the corresponding mitigation strategies.
AquaHarvest has developed a comprehensive risk management framework to identify, assess, and mitigate the key risks associated with the business. The risk register below outlines the principal risks, their likelihood and impact ratings, and the corresponding mitigation strategies.
| Risk Category | Risk Description | Likelihood | Impact | Mitigation |
|---|---|---|---|---|
| Biological | Disease outbreak causing mass mortality | Medium | High | Biosecurity; vaccination; quarantine |
| Biological | Poor genetic quality reducing growth rates | Low | Medium | Certified fingerling suppliers; genetic testing |
| Market | Selling price decline due to import competition | Medium | High | Forward contracts; brand differentiation; value-add |
| Market | Customer concentration risk (>30% from 1 buyer) | Medium | Medium | Diversified channel strategy; minimum 5 key accounts |
| Operational | Load-shedding disrupting aeration/pumping | High | High | Solar PV; diesel backup; UPS for critical systems |
| Operational | Water supply interruption | Medium | High | Multiple boreholes; RAS recycling; rainwater storage |
| Financial | Feed cost escalation above inflation | Medium | Medium | Long-term contracts; strategic stock reserves; own feed (Phase 3) |
| Financial | Capex overrun during construction | Medium | Medium | Fixed-price contracts; 10% contingency reserve |
| Regulatory | Delays in EIA or WULA approval | Medium | Medium | Early engagement; experienced EAP; parallel processing |
| Environmental | Drought reducing water availability | Low | High | Groundwater priority; RAS water recycling (95%+) |
| HR | Key person dependency (founders) | Low | High | Key-man insurance; succession planning; knowledge transfer |
| Political | Policy changes affecting aquaculture sector | Low | Medium | Industry body membership (AFASA, AASA); policy monitoring |
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