Kansas State University2015 | 2016

ANNUAL REPORT

Center for Risk Management Education and Research

www.k-state.edu/riskmanagement

Our mission is to engage students and industry partners in innovative education and research to advance

risk management skills and knowledge

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Director’s Message

Accomplishments

Educational Initiatives

Research

Fundraising Activity

Year in Review

Advisory Council Members

Student Fellows

Contact Information

Annual Report | Kansas State University Center for Risk Management Education and Research | 2

Director’s Message

Annual Report | Kansas State University Center for Risk Management Education and Research | 3

Risk pervades society. Every day we face risky prospects in our daily personal lives and business dealings. In risk lies opportunity, but unrecognized, misinterpreted, or ignored, risk can quickly become a major threat. The Center for Risk Management Education and Research engages students and industry partners in innovative education and research advancing their risk management skills and knowledge.

The Center for Risk Management Education and Research offi cially launched in January 2012 when the fi rst class of nine Student Fellows started the program. By May 2016, the Center will have had 39 students complete the program and 24 new Student Fellows will have completed their fi rst semester. CRMER has enjoyed immense progress toward becoming a premiere program for student risk management education and applied research. Two key metrics are among our proudest accomplishments demonstrating the value of the Center: 1) Student Fellow graduate employment placement is 100% in very high quality career paths. 2) Every supporting industry partner that has joined the Center has maintained high engagement since their inception as a partner. These two salient facts illustrate the quality of students that the Center is attracting and the value industry partners recognize in being associated with the Center.

Through their engagement with the Center, Student Fellows learn directly from a broad array of industry risk management experts. Students participate in internships, guest lectures, workshops, company visits, research projects, trading competitions, webinars, and on-line courses as they immerse themselves in advancing their integrated risk management knowledge. Through these experiences, students also gain better business communication skills, hone their business acumen, and build professional networks.

Industry partners play an integral role in the Center by helping guide the Center and design the experiences of the students, providing guest lectures and company site visits, off ering internships, and helping fund Center initiatives. Most importantly, partners get to know the students through these engagements and the students get to know the industry partners. The result is, industry partners regularly hire Student Fellow graduates!

We fully expect Student Fellow graduates will be among the best a company hires and they will become future industry leaders and executives. The purpose of this annual review is to document our activities and associated accomplishments. We look forward to continuing to work with the best and brightest college students as they prepare themselves for careers in a risky world. We are genuinely blessed to have such supportive industry partners to help advance the Center for Risk Management Education and Research as together we help prepare the next generation of executives.

Ted Schroeder, DirectorCenter for Risk Management

Education & Research

6 annual site visits to company headquarters

20 annual guest lectures from industry experts

30+ internships completed by Student Fellows

15% higher average starting salaries than BS peers

companies nationwide employ Student Fellows20+

Center Accomplishments

Having a premiere risk management educational program starts by attracting a diverse group of the best and brightest students to the Center to become Fellows. Each year since our inception we have increased the number of immensely talented students who have been accepted as Student Fellows in the Center. Our students are among the best at Kansas State University.

As an academic program focused on building student knowledge, our accomplishments include providing high quality educational experiences for students, securing resources to accomplish this goal, and ultimately in our graduates launching successful careers.

14 majorsrepresented

47 undergraduatestudents

19 graduatestudents

3.8 mean cumulativegrade point average 100% career placement

Exceptional Students Promising Careers

4 outstandingseniors

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Initiatives

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The Center is striving to offer students a broad set of valuable opportunities for increasing their risk management knowledge as well as enhancing professional and personal development. Several plans are in development stages to provide even greater impact on students and to produce ever stronger graduates from the program for Center partners. Among these initiatives are:

Initiating a partnership between the Center and the First Scholars program to provide first generation students increased access to the Center

Developing international internship opportunities for Student Fellows

Facilitating Student Fellow international travel educational experiences

Supporting new student educational competition teams that compete nationally or internationally in case studies or related events

Encouraging student participation in selected specialized industry risk management conferences

Creating increased networking between Center partner firms and Student Fellows to facilitate career opportunity exploration

Continuing to strive for multidisciplinary engagement of the best and brightest students as Center Fellows

Increasing a broader and larger group of dedicated industry Executive Partners in the Center

Research

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The following companies have sponsored Student Fellow research projects over the past four years (many companies have sponsored more than one project):

• BartlettandCompany• CattleFax• CattleEmpire• CMEGroup• Elanco• FedEx• InnovativeLivestockServices,Inc.• SidecarCapitalManagement,LLCjointlywithCertifiedAngusBeef• TheWiseCompany,Inc.

Projects have included an array of risk management topics including:• Implicationsofalternativefuturescontractspecifications• Economicimpactsandrisksoffoodsafetybreaches• Crosshedgingassessmentsofproductsthatdonothaveafuturescontract• Evaluatingalternativewaystodiscoverpricesinthinlytradedmarkets• Valuingwaterrightswheremarketsarenotwellestablished• Tradeoffsofdomesticorinternationalsourcingofproductmanufacturing• Economictradeoffsofoperatingbelowfullcapacityifforecastedmarginsarenegative• Guidingturnoverofseasonedmanagementstaffwithnewmillennialgeneration• Forecastingfuturedemand• Economicassessmentofnewbusinessventures

Students work in multi-disciplinary teams of mixed undergraduate and graduate students. A faculty member with expertise in the topic area provides mentoring to the students as they complete their project. The students present final project findings to the company sponsor and provide a written report, presentation slides, and other deliverables which include data, literature, spreadsheet tools, and results of data and statistical analyses to the sponsor. Research projects provide a phenomenal opportunity for Student Fellows to learn how to manage and complete a large project, how to work in multi-disciplinary teams, and how to conduct analysis and provide information and tools to address industry risk management challenges.

Student-led applied research is an integral part of the educational experience for Fellows of the Center. Because the research projects have industry sponsors and all address concerns specific to the sponsor company, the findings have all been confidential.

7 research projectscompleted 4 completed by spring 2016

research projects to be

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Fundraising Activity

Year Expendable Pledges Secured Endowment Pledges Secured

2012 $350,905 -

2013 $175,050 $1,060,000

2014 $315,600 $25,000

2015 $317,944 -

Developing diverse dedicated industry partners has been a major goal for the Center. Industry partners include companies involved in managing risk solutions for broad industries, public organizations, and governments on a global scale. Risk management consulting and information technology firms as well as companies providing risk management trading institutions, companies involved in physical commodity trading, agricultural production firms, and grain and food logistics companies also provide support to theCenter.GuestlecturesandsitevisitsattendedbytheStudentFellowsspancompaniesinvolvedincredit and financial risk, regulatory risk, physical safety risk, food safety risk, international commerce and business investment risk, and general enterprise risk management.

Pledged Financial Support from Center Partners by Year

Endowment PartnersGreg&MamieCase

Executive PartnersCattleFaxCHSCMEGroupGavilonInnovativeLivestockServices

Supporting PartnersBartlett and CompanyBeachnerGrain,Inc.KochRichard and Sarah PorterReneeMcReynoldsLaird-McReynoldsFamilyAgriculturalScholarship

For more information about ways to support the Center, contact Emilie Fink at emilief@found.ksu.edu or 785.532.7571

Year in ReviewJanuary

14|StudentFellowsattend2015VanTrumpWinterConference 29|LeeBorck-InnovativeLivestockServices-hostsStudentFellowsFebruary 13 | Chris Haverkamp -Paragon Invesments- speaks to Student Fellows 16 | Patrick Hessini -CHS- visits with Student FellowsMarch 03 | Metlife Kansas City hosts Student Fellows 04 | Mike Bernard -Union Pacifi c- speaks to Student Fellows 12 | Randy Blach -CattleFax- visists with Student FellowsApril 14 | President Kirk Schulz - Kansas State University- speaks to Student Fellows 15 | CRMER Advisory Council Meeting 27 | Student Fellows present research projects 28 | Elizabeth Hund -US Bank Food Industries- visits with Student FellowsMay 15 | Student Fellow Class of 2015 graduatesSeptember 10|BrendaTucker-CMEGroup-hostsStudentFellows 11 | Aon Risk Solutions hosts Student FellowsOctober 12 | Jack Weaver visits with Student Fellows 29 | Randy Blach -CattleFax- visists with Student FellowsNovember 05 | CRMER Advisory Council Meeting 11|INTLFCStonehostsStudentFellowsDecember 03 | CRMER welcomes 2016-2017 Class of Student Fellows

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Advisory Council

Lee Borck Chairmain,InnovativeLivestockServicesInc. ILSRiskManagement

Kevin Good Senior Analyst - Manager of Corporate Accounts CattleFax

Claire Hilscher Feed Demand Analyst Cargill Corn Milling North America

Patrick Hessini VicePresidentofTransportationandDistribution CHS

Joe Kovanda Risk Management BartlettCattleCompany,L.P.

Todd Kemp VicePresidentofMarketingandTreasurer NationalGrainandFeedAssociation

Renee Laird CEOTallgrassInternationalLtd. TallgrassInternational,Ltd.

Steve Neelly VicePresident,Merchandising&LogisticsCountryOperations CHS

Rich Porter Owner, Porter Farms Porter Farms

Ed Prosser VicePresident,AgriculturalTrading TheGavilonGroup,LLC

Brenda Tucker Executive Director, Client Development and Sales CMEGroup

Lacey Ward Research Analyst INTLFCStone

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2015-2016 Student Fellows

Christa DeneaultMathematics &

Economics

Ryan GoetzmannAgricultural Economics

Adam HancockM.S. Agricultural

Economics

Emily HarrisAgribusiness

Brady HeidrickFinance &

Accounting

Christa McKittrickFinance &

Accounting

Claire NewmanM.S. Agricultural

Economics

Cody O’BrienAgribusiness

Samuel PowerFinance &

Economics

Nicholas ScherrerEconomics

Jayce StabelM.S. Agricultural

Economics

Tucker StyrkowiczM.S. & B.S.

Engineering

Lucas SudbeckAgricultural Economics

Morganne WiltseAgribusiness

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2016-2017 Student Fellows

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Tanner Aherin Agricultural EconomicsKayode Martins Ajewole Ph D Agricultural EconomicsRachel Anliker Agricultural EconomicsRustin Ardery Animal Science and IndustryLindy Bilberry AgribusinessEmily Carls AgribusinessCooper Clawson Agricultural Economics and FinanceKevin Cole FinanceOlabisi Ekong M.S.c Agricultural EconomicsEthan Fowler Agricultural EconomicsKarly Frederick AgribusinessGrace Hammer AgribusinessBrian Highfill M.S. Agricultural EconomicsMathew Kaiser Industrial and Manufacturing Systems EngineeringLucas Karlin Agricultural EconomicsMandy Marchesini MarketingLuke Minear Agricultural EconomicsMichael O’Laughlin FinanceNathan Smart Agricultural EconomicsAdam Sobba MBAAbby Steiner AccountingChristian Torrez M.S. Agricultural EconomicsYouwei Yang Agricultural EconomicsRachel Zimmerman Agribusiness

Ted Schroeder, Director219 Waters Hall | Kansas State University | Manhattan, KS 66506 | 785.532.4488 | tcs@ksu.edu

To learn more visit www.k-state.edu/riskmanagementHear from our Student Fellows on the Center blog site www.crmerstudents.wordpress.com

Center for Risk Management Education and Research