Purchasing Series - Commodity Risk Management (2 Days)

Foundations in Commodity Risk Management - a Primer

Agenda

• Introduction
• Overview of Commodity Markets
• How Risk Plays a Portion of Application
• Management of Commodity Risks and Futures
• Definitions
• How the Process Works
• The Commodity Marketplace
• Options in the Market
• Understanding the Risks and their Results
• Managing Risk
• Commodity Markets and their Workings
• Segmenting the Marketplace
• How the Markets Work
• Commodity Futures Contracts
• Futures Positions
• Options within the Commodity Futures
• Options Terminology
• Options and their Types
• Exchange Traded Agreements
• Styles of Options
• Exercising Commodity Options
• The Valuation of Options
• Checklist for Options Trading
• Commodity Futures Exchanges
• Types and Categories of Exchanges
• How the Commodity Futures Exchanges
• Advantages and Disadvantages of Future Exchanges
• Margin Requirement Standards
• Credit Risk
• Order Strategies in the Future Markets
• Highlight Checklist
• How the Marketplace Functions
• Understanding Market Information
• Carrying Cost
• Relationship to Price
• Hedging Commodity Futures and Options
• Defining the Hedging Process
• Understanding Commodity Risk
• Buying Hedge Using Futures
• Long Futures Hedge
• Hedge Buying Using Options and Long Options
• Synthetic Long Calls
• Selling the Hedge
• Future Contracts
• Inverse Markets
• Normal Markets
• Short Functions
• Long Puts
• Comparison and Contrast
• Commodity Risk Management
• Defining Risk
• How to Define Risk in the Commodity Markets
• Assessing and Analyzing Risk
• Selecting the Right Hedge Tool
• Team Strategy for the Organization
• What the Future Holds
• Management Aims and Goals for the Organization
• Group Excercise
• Worksheets and Graphics

1 of 4 additional courses in the Purchasing Series. Complete three of the four courses to earn the Honda Supplier Training Advanced Automotive Buyer Certification.

February 20-21, 2019

HSO, Marysville, OH
Classroom 7
8:00 - 4:00
Instructor: Bill Agee - C.P.M., A.P.P., CEM, CMN, CPP, CPE, CPIM, CPCM