Risk is the probability of a negative outcome occurring, and in businesses usually the negative outcome is a loss of profit. For the pork industry, sources of risk can be production, market, public policy, human resource, or legal. Some of the ways to respond to risk can fall into the categories risk avoidance, understanding and measuring it, increasing capacity to bear risk, reduction, and transfer. The return on equity depends on the return on assets, leverage, and cost (of debt). Revenue and cost risks depend on global pork or supplies (feed mainly) prices, exchange rates, and production issues like sow productivity or grow-finish performance. Having a risk management strategy and alternate opportunities can help with risk, but two unavoidable risks are feed prices and hog industry itself.