Analysis of relationship between operational risk and financial efficiency among different location types in farmers’ association

Abstract

This article identifies and analyzes operational risks for farmerspsila associations in Taiwan, revealing the relationship between risk and operational efficiency. Using the concept of risk management, this paper identifies five types of operational risk currently affecting farmerspsila associations: external environmental risk, financial risk, organizational risk, leadership and decision-making risk, and human resource risk. Subject evaluation shows that external environmental risks are the most common risks, but objective analysis indicates that financial risks are the most influential. Farmerpsilas associations in urban, rural, and mixed locations exhibit some differences in operational efficiency as they confront organizational risks and financial risks.