Risk Management Specialist

Risk management specialists manage financial risk for agricultural producers by identifying, measuring and advising on risks for an organization. They analyze and work with data based on studies they have conducted to test the impact of decisions being considered. Risk management specialists will also communicate risk policies and processes for an organization in a way that is easy to understand.

Future Job Market

Fair
Good
Excellent

Typical Employers:

Risk management specialists can work for agricultural marketing groups, banks, grain merchandisers or consulting firms. Some in the risk management field are self-employed.

Suggested Professional Organizations and Associations:

The Risk Management Society
The Risk Management Association
Professional Risk Managers’ International Association

Salary:

$126,000?

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SAE Connections:

FFA Connections:

What Responsibilities Will I Have?

Find strategies to reduce price risk on agricultural commodities
Use software to create models of decision effectiveness and trends
Design and implement an overall risk management blueprint for an organization
Look at the impact of pests, disease and ecological factors
Research agricultural data and government agency reports
Conduct economic impact studies
Prepare risk management and insurance budgets
Ensure compliance with U.S. Generally Accepted Accounting Principles (GAAP)
Develop, monitor and communicate risk management measurement procedures
Analyze current risks and identify potential risks that may affect the company
Create weather forecasts and financial forecasts for farmers
Provide hedging (taking steps to protect assets) strategy recommendations with varying risk tolerances
Monitor commodity prices and potential threats to prices
Provide daily or weekly credit and risk reports to clients based on their needs
Review any new major contracts or internal business proposals
Conduct market research on best practices, competitive landscape and new hedging tools
Build risk awareness amongst staff by providing support and training

Recommended High School Courses:

agricultural education
math
statistics
business
personal finance
accounting

Education/Training Required:

A bachelor’s degree in agricultural business, accounting, finance, law, statistics or a related field is a base requirement to be a risk management specialist. A master’s degree in business administration, risk management or a related field may be preferred.

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