Karoo Prime Lamb Farms — Risk Management

The following risk matrix identifies the principal risks to the business and corresponding mitigation strategies:

Section 13 · Business Plan

Risk Management

The following risk matrix identifies the principal risks to the business and corresponding mitigation strategies:

Risk Category	Risk Description	Likelihood	Impact	Mitigation Strategy
Climate / Drought	Extended drought reducing grazing capacity	High	High	Rotational grazing, feed reserves, drought insurance, destocking protocol
Livestock Disease	Outbreak of controlled or notifiable disease	Medium	High	Vaccination programme, biosecurity protocols, veterinary monitoring
Predation	Stock losses from jackals and caracal	High	Medium	Jackal-proof fencing, guard dogs, coordinated predator management
Market / Price Risk	Decline in lamb and mutton market prices	Medium	Medium	Diversified revenue streams, contracted offtake agreements, cost control
Theft / Stock Losses	Livestock theft	Medium	Medium	Farm security, stock identification, community liaison, insurance
Interest Rate Risk	Rising interest rates increasing debt servicing costs	Medium	Medium	Fixed-rate loan structures, accelerated debt repayment
Regulatory Risk	Changes in agricultural or environmental legislation	Low	Medium	Compliance monitoring, industry body membership (RPO, NWGA)
Key Person Risk	Loss of key management personnel	Low	High	Key-man insurance, succession planning, skills transfer programmes

The following insurance policies will be maintained:

Livestock Insurance: Comprehensive cover for the breeding flock against disease, drought mortality, and theft.
Property and Infrastructure Insurance: Cover for farm buildings, equipment, and vehicles.
Business Interruption Insurance: Protection against revenue loss resulting from insured events.
Liability Insurance: Public and employer’s liability cover.
Key-Man Insurance: Life and disability cover on the Managing Director and Livestock Director.

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