MANHATTAN KANSAS, U.S. — Kansas State University (KSU) and the IGP Institute are offering risk management courses in August geared toward professionals responsible for buying U.S. food and feed grains, commodity traders, banking and financial advisers, government officials and anyone who works in supply chain management and cost control.
The training will be offered in two sections: introduction to risk management – I planned for Aug. 5-7; and the intermediate risk management – II scheduled Aug. 8-9. Participants have the option to attend both courses Aug. 5-9. All sections will be taught at the KSU IGP Institute in Manhattan, Kansas, U.S.
“The introduction to risk management I participants will be introduced to commodity risk management and gain further insight into approaches of price risk management for the procurement and purchase of grains, in conjunction with related sales of grains and processed products,” said Guy H. Allen, IGP Institute’s senior agricultural economist, who will be leading the courses.
Allen said the first three days will focus on presentations looking at hedging strategies utilizing both futures and options for both the underlying commodity as well as related foreign exchange exposure.
In the IGP-KSU intermediate risk management – II training, participants will identify the full scope of possible risks associated with a commodity-based business, along with appropriate methods of risk measurement. Further discussion will include how to establish risk limits and appropriate business structures, as well as how to incorporate this understanding into a comprehensive risk management policy for a business or organization.
“Presentations will also include how to appropriately account for derivative and futures positions on a ‘mark-to-market’ basis,” Allen said.
He also shared that it is advised that participants come with a basic understanding of derivative and futures markets, as both courses will focus on why, when and how to utilize commodity derivatives, futures and options to manage risk.