United Grain Growers Limited (a)
Harvard Business School Case No.: 201-015; Teaching Note No.: 204-124
Posted: 9 Dec 2004
Date Written: February 27, 2001
SUBJECT AREAS: Agribusiness, Business processes, Canada, Competitive strategy, Corporate strategy, Insurance, Managerial economics, Managerial skills, Operations management, Quantitative analysis, Risk assessment, Risk management, Service industry
CASE SETTING: Winnipeg, Canada; agriculture; $1.8 billion revenues; 1998
United Grain Growers Ltd. (UGG), a Canadian grain distributor, audited its exposure to a number of key risks, especially the impact of weather on grain volumes and operating income. Understanding these risks was crucial because the company was in the midst of a major modernization and diversification program. But though UGG already managed traditional risks through a variety of control processes, what could be done about the biggest risk - the weather?
Teaching Purpose: Designed to discuss fundamental issues of risk management: Why does it make sense for a firm to manage its risks? From where do they arise? How do you measure risk?
Suggested Citation: Suggested Citation