IGP short course explains risk management

by World Grain Staff
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MANHATTAN, KANSAS, U.S. — The ins and outs of risk management will be covered during the Basic and/or Advanced Risk Management short course Aug. 13-15 and Aug. 16-17 by the International Grains Program (IGP) at Kansas State University (KSU).

As global food input prices reach extreme levels, the topic of risk management is critical in ensuring the security of a company’s financial future said Jay O’Neil, senior agricultural economist for the IGP.

“World commodity prices continue to be extremely volatile and food inflation is on the minds of all global grain buyers and governments; therefore, managing price risk is essential,” O’Neil said.

As a graduate of the 2011 risk management courses, Victor Resendiz, middle office chief of compliance, risk management and corporate purchasing for Corporativo Bimbo, S.A. de C.V. of Mexico, understands that these volatile markets are what keeps his job interesting as well as makes it difficult. After attending these short courses he has a better understanding of the necessity for risk management.

“What I enjoy most about my job is the challenge to understand the market and the importance that risk management is developing worldwide. It is new in some countries and advanced in others; however, more and more companies are becoming aware of risk management,” he said.

With the basic course planned for Aug. 13-15, and the advanced course to follow Aug. 16-17 participants have the opportunity to understand the relationship between cash and futures markets, fundamental and technical analysis, futures spreads principles of hedging, and principles of risk management and basic trading.

Advanced course participants will learn the principles of futures and option trading, OTC markets, the Greeks, futures put and call strategies for hedging, spreads and butterflies. The last day of the course includes a futures trading simulation.

“The risk management courses give participants a good understanding of commodity risk management principles as well as providing them tools and real world strategies that can be used to control costs and maintain profitability,” O’Neil said.

As O’Neil talks about the relevance of the course, he said, “In today’s volatile and dangerous commodity markets, understanding and applying the principles of risk management is critical to a company’s survival.”

For more information on how to register and course fees, please visit the IGP website: www.grains.k-state.edu/igp.

 

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