This guide is intended to help extension workers better understand the concept of risk, the situations where risk occurs and management strategies that can be used to reduce, or at least soften its effect. It is hoped that the guide will be useful in assisting extension workers to provide farmers with advice on the kind of risk management strategies that they can employ to deal with risk in their day-to-day farming operations. In this way extension workers can help farmers recognise and understand the risks that they are likely to face and assist them in making better farm management decisions that reduce the negative effect of the risks encountered in farming.