ARM503

AGRIBUSINESS RISK MANAGEMENT

Content:

This course aims to introduce students to the complex and diverse range of risks that organisations must manage in today's increasingly global agribusiness environment.   Agribusinesses are exposed to both uncertainty and risk, thereby creating both opportunities and the risk of financial losses. Agribusinesses are characterized by high risk-taking under intense uncertainty. Risk management is implemented not to maximise profits, but merely to control financial losses. The organisations that best control their risk and losses are more likely to survive with some financial viability.

As agribusiness managers operating in one of the world’s most risky business environments it is fundamental risk management play an important part in ensuring an organisation’s ability to manage risks. This unit is designed to identify the risks in agribusinesses and food/fibre supply chains, to discover methods to measure these risks, and then find strategies to manage these risks.

Unit objectives

This Unit will enable students to develop the following skills:

  • Understanding of risk and uncertainty
  • Risk identification and understanding
  • Describe the risk management process
  • Understand the types of risk modelling
  • Able to develop and used appropriate decision making models
  • Implement risk management and control procedures through the use of products, options or by optimisation. 

Learning outcomes:

  1. Develop an understanding of risk and uncertainty.
  2. Describe the risk management process.
  3. Understand the types of risk modelling.
  4. Develop and use appropriate decision making models.
  5. Implement risk management and control procedures through the use of products, options or by optimisation. 

Assessment: 

  1. Assessment one - 2000 words (40%)
  2. Assessment two – 4000 words (60%)