Risk Management Program management

Summary

Since its inception in 2002 when the MLA/SFE Cattle Futures contract was listed, MLA's risk management program has expanded to include initiatives such as support for alternative risk management products, launch of the Australian Cattle Trade Rules and development of risk management and marketing workshops.
The key focus for the program was to support the commercially led development of risk management products for the Australian meat industry. Despite not gaining momentum in 2011/12 there was the need for the development of risk management capabilities within the sheepmeat industry. Overtime, the program adopted a more targeted, individual approach so as to optimise the development of the risk management culture in the red meat industry.
The approach entailed presenting to, and communicating with, senior executives of target companies; providing insight, information and expertise to assist risk management product development; and negotiating with product providers to ensure MLA funds are utilised most effectiveIy. With the exception of the Risk Management Program Manager(the Consultant), MLA lacked the depth of derivatives expertise and experience required to perform these higher level activities. The primary role of the Consultant was to drive the strategy and lead the delivery of MLA's Risk Management program to enhance the risk management culture and, therefore, expedite the uptake of risk management, within the Australian beef and sheep meat industries.