Managing Risk

This subject is not offered in 2014.

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

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.

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.

Farmers, merchants, and end-users in deregulated food/fibre supply chains are increasingly exposed to risk, particularly delivery risk and 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, measurement, analysis, and management. Risk analysis will include risk in relation to returns and cost, and why some risk taking is important to business. The success and failures of risk management will be examined. The objective of this subject is to extend the participant's ability:

• to measure and analyse risk
• to identify and manage risk through strategic alliances and internal controls
• to manage price risk through forward contracting, futures, options, and over-the-counter bank products

• to analyse problems with risk management

Two individual assignments, 750 words each (2 x 15%), Group assignment, 1,500 words (20%), Case studies, 2,000 words (30%), On-line discussion participation (20%).

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

Williams, John, 2013, Agricultural Supply Chains and the Challenge of Price Risk, Earthscan-Routledge, Abingdon, UK.

Further reading material will be available online.

This subject is not available as a breadth subject.

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