Commodity Risk Manager

Chicago-Merchandise Mart
Blommer Chocolate Company (Headquarters)
222 Merchandise Mart Plaza
Suite 120
Chicago, IL 60654, USA

Description

Essential Duties and Responsibilities:

• Develop risk management function within the organization
• Design roles, rules, guidelines, policy and function as appropriate
• Implement necessary infrastructure and systems to monitor risk within the organization
• Operate within the core values of respect and care for others.

Risk Identification and Assessment:

• Conduct thorough risk assessments of raw material and other market-related risks, identifying potential threats such as price volatility, supply disruptions, regulatory changes, climate change, and geopolitical instability.
• Scope risk management includes optimization with sales, production, and inventory management.
• Profitability analysis in terms of daily or weekly purchase and sales contracts being made.
• Monitor trends, economic indicators, and industry news to identify emerging risk.
• Develop risk matrices and key risk indicators (KRIs) to measure and track risk exposure.
• Collaborate with procurement, operations, and finance teams to implement risk management controls and procedures.
• Develop and maintain relationships with insurance providers, hedging counterparties, and other risk management partners.

Risk Reporting and Communication:

• Capture all the sources of financial risk and set up systems to report the same on a real-time or daily basis.
• Prepare regular risk reports for management, highlighting key risks, mitigation strategies, and potential impacts.
• Communicate risk information effectively to stakeholders at all levels of the organization.
• Participate in risk management committees and working groups.

Business Continuity:

• Develop and maintain business continuity plans for cocoa-related operations.
• Conduct regular business impact assessments to identify critical processes and dependencies.

Compliance:

• Monitor and enforce compliance of risk controls within the organization.
• Ensure compliance with relevant regulations and industry standards related to cocoa sourcing, trading, and risk management.
• Stay informed about changes in regulatory requirements and their impact on the business.
• Educate key employees on the importance of risk management and broaden the understanding of risk within the company.

Physical Requirements:

• General office environment with the majority of time using a computer.

Safety, Quality and Hygiene Requirements:

• Maintain compliance with all company policies, procedures, and code of conduct.
• Comply with workplace uniform requirements and safety gear when on the plant floor versus office.

Performance Expectations:

• Identify, evaluate, and manage risks the company could encounter.
• Gauge potential risks to the company through research and assessment.
• Conduct risk assessments, collecting and analyzing data, statistics, and reports.
• Develop contingency plans to ensure maximum risk control.
• Ensure the company meets the risk requirements while implementing the risk management framework.
• Evaluate existing risk management processes for improvements to achieve maximum risk control.

Skills and Work Experience Requirements:

• Proficient in financial modeling and analysis.
• Knowledge of VAR calculations and Monte Carlo type risk assessments.
• Ability to perform independent value analysis.
• Adept in risk management, preferably in the commodities or agricultural sector.
• Strong knowledge of the commodity markets, preferably with exposure to cocoa, soft, or dairy sectors including processing and trading.
• Ability to work effectively in a fast-paced, dynamic environment.
• Excellent communication and interpersonal skills, written and verbal.
• Proficient in Microsoft Office suite.

Desired Skills:

• Knowledge of hedging instruments and derivatives.
• Ability to understand the sustainability and ethical sourcing issues in the cocoa industry.
• Proficiency with risk management software and systems.
• Knowledge of calculating various types of financial risk including outright, basis, ratio, counterparty, and credit risk.

Education:

• Bachelor's degree in finance, economics, supply chain management, or a related field.
• Advanced degree (MBA or master's in risk management) preferred.