Section 2 of the report describes the approach taken to financial and risk analysis in this study, and serves
as a simple guide for undertaking such analyses more generally. Section 3 provides a brief overview and
critique of previous financial data collection and analysis. Sections 4 to 7 provide examples of financial
and risk analysis related to the MRC Rural Extension for Aquaculture Development (READ) project, and
the MRC Management of Reservoir Fisheries (MRF) projects in the Lao People's Democratic Republic
(Lao PDR), Cambodia and Viet Nam. Section 8 provides a detailed technical summary of the report, and a
comprehensive set of conclusions and recommendations. The appendices provide various supporting
information, including a possible approach to financial appraisal of new aquaculture candidates (requested
by the AIMS project). A comprehensive spreadsheet incorporating all financial models used in the
analysis is available separately.
The study concludes that several different forms of pond and cage aquaculture are very financially
attractive, with acceptable levels of risk, and offer significant potential for poverty alleviation.
A major recommendation is to use financial analysis and risk assessment early on in the project cycle to
help identify and refine useful interventions, and provide essential information for those who may wish to
diversify into new activities in aquatic resource development and management.