Enterprise Risk Management - Meats
By: Craig Haymaker, Chief Operating Officer
Enterprise risk management has not gained enough traction in the meats supply chain. In a recent survey on the state of risk oversight conducted by AICPA involving over 600 US companies, only 24% described their enterprise risk management as “mature” or “robust” with the perceived level of maturity declining over the last two years. Only 33% possess enterprise risk management processes while 60% believe the volume and complexity of risks facing their organizations have increased extensively over time.
In a global survey conducted by Aon with over 1,000 companies, commodity price risk was listed as #7 on the top 15 risks facing organizations. For many organizations, the objective is to manage all risks facing the enterprise with commodity price risk a priority among others. Meat consumers and producers desiring to manage commodity price risk often have a difficult time getting off the ground.
Most companies desire a risk management framework before hedging but don’t know where to start. HedgeStar can provide the foundation needed to integrate risk management into the fabric of any organization and begin hedging commodity price risk in a focused and cost-effective way. Call a HedgeStar expert today.