-Crop insurance has become an important risk management tool, especially in combination with the futures market so both yield and price are protected Crop Revenue Coverage(CRC),for example.
-Payoff matrices,regret matrices,and decision trees can be used to organize information and,thous,help a manager make a risky decision.
-Decision criteria for risk decisions include maximin,minimax,maximum simple average,maximum expected returns, minimum expected regrets,safety-first rule, and probability of success.
-Managers can develop scenarios to better understand the impact of alternative views of the future and, thus, to make informed decisions.