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Agricultural Risk Management Team | The World Bank

Organization’s Acronym: 
ARMT
Web Address: 
http://www.worldbank.org/agrm
Address: 
1818 H Street NW Washington, DC 20433
Country: 
United States
Areas of Work: 
Insurance/re-insurance
Areas of Work: 
Capacity building/training/research
Areas of Work: 
Risk assessment
Areas of Work: 
Price risk management
Areas of Work: 
Weather risk management
Areas of Work: 
Other
Brief summary of organization’s risk management work: 

The World Bank assists clients to develop and apply more effective and sustainable strategies for managing agricultural risks through investment lending and technical assistance involving (i) physical infrastructure (e.g., irrigation and drainage facilities); (ii) technology development and transfer (e.g., improved crop varieties and animal breeds); (iii) improved management practices (e.g., integrated pest management, quality control); (iv) financial instruments (e.g., insurance, savings; inventory credit; catastrophe bonds); and /or (v) public programs (e.g., safety nets). This work is undertaken across the World Bank’s Sustainable Development Network, within several financial sector units and the International Finance Corporation.

Under the program led by the Agricultural Risk Management Team (ARMT), with financial support of the European Union and the Swiss and Dutch Governments, particular emphasis has been placed on supporting market-based risk management approaches and supporting broader applications of agronomic, weather, and price data for ex ante risk management. This program involves technical assistance in identifying and quantifying risks in agriculture and agricultural supply chains, and advisory services and training on alternative risk management approaches and instruments. The World Bank’s support for agricultural risk management is normally provided in conjunction with other development partners, including bilateral and multilateral agencies, regional technical organizations, research and training centers, NGOs, and others.

The Agricultural Risk Management Team (formerly known as the Commodity Risk Management Group—CRMG) is part of the World Bank's Agriculture and Rural Development Department (ARD).
 
Contact information to be listed with profile: 

http://www.worldbank.org/en/topic/agriculture



South African Futures Exchange

Organization’s Acronym: 
SAFEX
Web Address: 
http://www.jse.co.za/Markets/Commodity-Derivatives...
Address: 
One Exchange Square, Gwen Lane, Sandown, 2196 Private Bag X991174 Sandton, 2146 Republic of South Africa
Country: 
South Africa
Areas of Work: 
Price risk management
Brief summary of organization’s risk management work: 

The SAFEX Commodity Derivatives Market provides a platform for price discovery and efficient price risk management for the grains market in South and Southern Africa. More recently, the Division also offers derivatives on precious metals and crude oil.

Commodity markets have existed for many centuries and were the first to innovate contracts in which to manage price risk. The use of derivative instruments through futures and options contracts, provide market participants with the ability to manage their price risk in the underlying physical market. By trading on a formal exchange which connects buyers and sellers, not only is price discovery achieved in a transparent fashion, but all transactions are guaranteed through the derivatives clearing structure.
Producers and users of agricultural commodities who hedge their price risk are thereby limiting their exposure to adverse price movements. This encourages increased productivity in the agricultural sector as farmers and users are able to concentrate their efforts on managing production risks. Production risks associated with variables such as the weather, farm/production management and seasonal conditions.
The physically settled commodities rely on warehouse receipts to facilitate the delivery process. The warehouse receipts are utilized by financial institutions who offer financing to clients who own the receipts. Derivative contracts also enable institutions to fund input costs to producers who hedge their price risk and in so doing encourage sustainable production.
 
Contact information to be listed with profile: 

http://www.jse.co.za/Home/ContactTheJSE.aspx

+27 11 520-7000

Email address: 
[email protected]