Application of Risk Profile in Crop Products Risk Management of North Khorasan Province (Case Study of Sugar Beet)

In this paper, we employed risk profile analysis to study sugar beet risk management in North Khorasan. To design the risk profile, we used data from 120 sugar beet producers for the period of 2005-2007. For evaluating of losses related to each risk component, two indexes of frequency and severity of risk were calculated and based on that risk matrix were created. Results showed that area with low risks have largest frequency risk. In 2006, relatively to 2005, frequency of wild animals attack increased and impact risk of not receiving credit on time decreased while the risk impacts of wild animal’s risk, high cost of credit, unskilled labor, weeds, lack of labor and decreasing production subsidy increased comparing to those in 2007. Based on the findings, use of risk profile is suggested in risk management and designing of insurance coverage and models.