Wednesday, October 15, 2014

Evaluating Financial Risk with Investment Guidelines

Lauren (Robertson) Kornmann, DeWitt, Iowa, defended her thesis, “Evaluating Financial Risk with Investment Guidelines,” on April 11. Kornmann is a May graduate from Kansas State University with a Master of Agribusiness (MAB) degree.
Due to the credit crisis of 2008, many global companies have adapted their investment policies to function successfully in an uncertain financial environment. Companies must look beyond traditional markets and international bank credit ratings to evaluate risk. Kornmann’s objective is to determine the optimal framework of measuring institutional risk and country risk that minimizes liquidity and operational risk while still meeting business growth needs.
“When evaluating current guidelines, the following investment principles should be considered: preserve principal, meet liquidity needs, deliver the best yields possible within the guidelines of this policy and market conditions, avoid inappropriate concentrations of investments, and provide fiduciary control of all investments and cash,” Kornmann said. “However, when investing, it is not always possible to optimize all of these objectives at the same time, so it must be determined which objectives should be given priority.”
By implementing a balanced process that regularly monitors current market indicators of counterparty risk, an organization will be in a stronger position to define and determine the potential risk.
Dr. Allen M. Featherstone, Agricultural Economics Department Head and Kornmann’s thesis advisor, said, “The upheaval in the global banking systems due to the U.S. housing crisis has caused many global companies to reconsider how they invest cash reserves in international banks. Traditionally, those measures have been updated on an annual basis. Ms. Kornmann explored a mechanism to update the measurement of fiduciary soundness of banks on a timelier basis, allowing management to have a more timely warning system to detect emerging soundness concerns.”

Monday, October 13, 2014

Benz to present Animal Health Industry Insights Seminar at K-State Olathe

Kansas State University's Master of Agribusiness (MAB) program is hosting an Animal Health Industry Insights seminar on Wednesday, October 22 at noon at the K-State Olathe Campus.
Dr. Sharon Benz is the Director of the Division of Animal Feeds within the FDA’s Center for Veterinary Medicine.  She is responsible for providing direction and oversight to the division, which monitors and sets standards for contaminants, approves food additives and oversees medicated feed and pet food programs. Prior to her appointment to director in 2004, Dr. Benz served as the Team Leader for the Nutrition and Labeling Team. In preparation for her work with the FDA, Dr. Benz was employed by the National Academy of Sciences, Board on Agriculture and was responsible for the Animal Nutrition series bulletins on animal nutrient requirements. She holds B.S. from Penn. State University and a M.S. and Ph.D. from Virginia Tech. Her training is in ruminant nutrition and mineral metabolism and requirements.
The seminar is open to the public, but attendees must register by October 15th at https://commerce.cashnet.com/KSUMABSTORE and pay the $50 registration fee that includes lunch.

For more information about the seminar contact Mary Bowen at 785-532-4435 or mjbowen@ksu.edu.