Managing Risk

Subject AGRI90016 (2013)

Note: This is an archived Handbook entry from 2013.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject is not offered in 2013.

Time Commitment: Contact Hours: This subject is taught using multimedia teaching techniques and is based around business case studies. There is a 3 day intensive for this subject followed by learning tasks and discussion facilitated using the LMS.
Total Time Commitment:

112 Hours. It is recommended that students devote the equivalent of 14 hours per week to this subject over 8 weeks.

Prerequisites: None
Corequisites: None
Recommended Background Knowledge:

Students must be able to perform word processing, use Excel spreadsheets, and have a reasonable understanding of the Internet and the University's Learning Management System.

Non Allowed Subjects: None
Core Participation Requirements:

It is University policy to take all steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel they have a disability that will impact on meeting the requirements in this subject are encouraged to discuss this matter with the Subject Coordinator and Disability Liaison Unit.


Melbourne School of Land & Environment Student Centre
Ground Floor, Melbourne School of Land & Environment (building 142)

Phone: 13 MELB (13 6352)

Subject Overview:

Farmers, merchants, and end-users in deregulated food/fibre supply chains are increasingly exposed to risk, particularly price variability-volatility. Consequently, risk management needs to be an integral part of good business practice. However, there can be risk inter-change and trade-offs in risk management, which makes managing risk difficult to achieve. But without risk, there are no opportunities for business profit. Risk needs to be balanced between the risk of losses and the rewards through profit. In some agricultural industries, a sound understanding of the theory and practice of future market operations, and associated price risk management instruments, is fundamental to business management and decision-making.


This subject focuses on agribusiness risk with an emphasis on risk identification, analysis, measurement and management. The theory and practice of risk management will include risk management instruments such as futures, options and and over-the-counter products. In this subject, students will learn:

  • Analysis and measurement of risk
  • Management of risk through forward contracting futures, options, and over-the-counter productsAssessment of integration through strategic marketing alliances
  • Problems with risk management

Two individual assignments, 1,500 words each (2 x 20%), Group assignment, 2,000 words (20%), Case studies, 2,000 words (20%), On-line discussion participation (20%).

*Online discussion is an integral component of this subject - a minimum grade of 50% is required in this component.

Prescribed Texts:

Software requirements (if any) will be provided through the Master of Agribusiness Office at Parkville, contact details above.

Recommended Texts:

Further reading material will be available online.

Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

It is expected students will develop:

  • Awareness of and ability to utilise appropriate communication technology and methods for the storage, management and analysis of data
  • Highly developed computer-based skills to allow for effective on-line learning and communication
  • Ability to collaborate, exchange ideas and debate across on-line platforms
  • Ability to plan work, use time effectively and manage small projects
Related Course(s): Master of Agribusiness (Coursework)
Master of Agribusiness (Coursework)

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