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Learning
Financial Market Assessment for the Agricultural Sector
When you have completed the five training modules, you will:
- Recognize critical challenges in the development of agricultural finance products and the role of financial market assessment in overcoming those challenges
- Analyze the strategies through which financial institutions are sustainably delivering agricultural finance
- Identify principles, data sources and tools that can be used to design and deliver cost-effective agricultural finance products
- Examine the opportunities and limitations of public private collaboration for increasing access to agricultural finance
Resources
- Type Guideline
- Language English
- Keywords Agricultural Finance
- File Facilitator Guide
- File Module 1 Analysing Agricultural Finance Markets
- Type Training course
- Language English
- Keywords Agricultural Finance
- File Facilitator Guide
- File Module 2 Principles for the Design of Agricultural Finance Products
Overview:
Having explored agricultural markets and client characteristics relevant to initial product design, this module focuses on the role of risk management in effective product design and delivery, with particular emphasis on the unique risks in agriculture that must be identified and addressed. Concrete examples of risk management by financial institutions active in providing agricultural finance help anchor an understanding of the role of risk management, and set the stage for participants to begin exploring issues related to cost-effective product delivery (which is the focus of Module 4).
Total time required for standard delivery of the module: 2 hours 15 minutes
Objectives (OBJ)
1. Identify risks that are unique to agricultural finance
2. Build a process for embedding risk management into product design
3. Analyze strategies and tools being used by financial institutions to manage risk in agricultural finance products
4. Compare strategies for covering the cost of risk management
Key Takeaways (KT)
1. For an agricultural finance product to be sustainable, risk management must be embedded in its design.
2. Leveraging existing capacities and tools helps minimize the cost of embedded risk management.
3. Even when risks are properly assessed, mitigation measures may lie outside a financial institution’s capacity.
4. Financial market assessment should identify the most relevant risks as well as potential partners with informational and risk management advantages.
5. Risk management in product design is an iterative process that continues even after the product is launched.
- Type Training course
- Language English
- Keywords Agricultural Finance
- File Facilitators Guide
- File Module 3 – Tailoring a Financial Risk Management Strategy for the Agricultural Portfolio
- Type Training course
- Language English
- Keywords Agricultural Finance
- File Module 4 – Defining a Cost-Effective Product Delivery Strategy
- File Facilitators Guide
- Type Training course
- Language English
- Keywords Agricultural Finance
- File Module 5 –Public-Private collaboration potential to launch agricultural finance products
- File Facilitators Guide