1 / 9

North Dakota Grain Dealers Asssociation

North Dakota Grain Dealers Asssociation. Annual Convention January 20-22, 2013. AGENDA. Capital Management Risk Management Board of Directors - Top Ten List . CAPITAL NEEDS!!!!. ASSETS. Capitalization (Funding) Assets. Two Types of Capital Equity Capital = No Interest Paid

fagan
Download Presentation

North Dakota Grain Dealers Asssociation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. North Dakota Grain Dealers Asssociation Annual Convention January 20-22, 2013

  2. AGENDA • Capital Management • Risk Management • Board of Directors - Top Ten List

  3. CAPITAL NEEDS!!!! ASSETS

  4. Capitalization (Funding) Assets • Two Types of Capital • Equity Capital = No Interest Paid • Allocated (Individual owners) • Unallocated (Retained Savings) = Permanent Equity • Debt Capital = Interest Paid • Current Liabilities • Long Term Liabilities

  5. Four Cornerstones of Risk at Your Coop… • Operational Risks • Natural disasters • Insurance– Are you adequately covered? • Management disasters • Employee issues - Succession planning • Inventory valuations & quality • Human Error/Safety • Fraud • Legal Risks • Contracting Practices - Is the contract binding? • Environmental – Do you know what they are and have you taken measures to mitigate them? • You could be “debt free”; but you will never be “liability free”! • Financial Performance & Capital Management Risks • Profitability • Liquidity • Do you know your borrowing capacity? • Leverage • Spend $ (capital) on the right things • Counter Party Risk • Buyers/Sellers • Suppliers/Contractors • Partners Confidential and Proprietary

  6. TOP TEN • Be team oriented and improve your meeting facilitation skills • Everyone’s perspective is important (Offer, seek, and if need be, force it out!) • Watch over the coop’s equity like it was your own, because…  • Insist on feasibility studies, projections, budgets, competitive bids, etc… • Rigorously ask questions and challenge management strategies in the board room, but support Board decisions outside the board room. • Get rid of the rubber stamp and communicate with one voice • No Sacred Cows • Be willing to walk away, or challenge the “old way”

  7. TOP TEN CONT… • Respect the duties and responsibilities of the Board and Management—they are different • As a director you don’t get paid enough to deal with employee or operational issues. • Seek outside expertise (Advisors, appointed directors, industry experts, etc…) • Preferably someone without a dog in the fight. • Implement sound risk management practices and monitor them • Market conditions change rapidly; don’t get caught wearing shorts in a blizzard. • Spend 70% of the board meeting on strategic issues and 30% on operational issues • Map the trip and hold management accountable to keep it on the road. • Understand the business, its financial position, and monitor results • Know the assets you have to work with and their limitations (Fixed, Human, & Financial)

  8. Did you catch it…? #10) HAVE FUN  AND ENJOY WHAT YOU DO!!

  9. Thank You!!!

More Related