Risk management for fisheries

Risk management methods provide means to address increasing complexity for successful fisheries management by systematically identifying and coping with risk. The objective of this study is to summarize risk management practices in use in fisheries and to present strategies that are not currently used but may be applicable. Available tools originate from a variety of disciplines and are as diverse as the risks they address, including algorithms to aid in making decisions with multiple stakeholders, reserves to buffer against economic or biological surprises, and insurance instruments to help fishermen cope with economic variability. Techniques are organized in a two‐stage framework. In the first stage, risks are identified and analysed. Strategies presented in this category focus on decision analysis, including multicriteria decision‐making tools, and the related concept of risk assessment. Then in the treatment stage, identified risks can be transferred, avoided, or retained using tools such as the Precautionary Approach, portfolio management, financial contracts to manage price risk and horizontal integration. Published fishery applications are reviewed, and some empirical examples of risks and risk management using US fisheries data are presented.