What is the Risk Management Agency?
The Risk Management Agency is a part of the United States Department of Agriculture and is responsible for helping producers of agriculture manage their business risks through market-based and effective risk-management solutions. The mission of the Risk Management Agency is to promote, support and regulate prudent risk management solutions to better preserve and strengthen the economic stability of the United States of America’s agriculture producers. As a part of this general mission, the Risk Management Agency operates and manages the Federal Crop Insurance Corporation.
Risk Management Agency Quick Facts
The following details outline the administration of the Risk Management Agency:
The Risk Management Agency was created in 1996; however, the FCIC was formally founded in 1938
The headquarters of the Risk Management Agency are located in Washington, D.C.
The Risk Management Agency employs roughly 530 people in various offices throughout the country. The operating budget of the agency is approximately $80 million dollars
The current administrator of the Risk Management Agency is William Murphy, who was formally appointed to office in July 2009. In addition to serving as the agency’s administrator, Mr. Murphy also operates as the manager of the FCIC.
Organization and Functions of the Risk Management Agency:
The Risk Management Agency is currently organized into three divisions: Product Management, Risk Compliance and Insurance Service. The Insurance Services Division is responsible for program delivery–for example, managing the contracts with the companies that service the policies—as well as local program support and administration.
The Risk Management Service, by way of the FCIC, provides crop and livestock insurance to American producers. The Risk Management Service works with fifteen private-sector insurance entities that sell and service such policies. The Risk Management Agency is responsible for developing and subsequently approving the premium rate that these companies offer insurance.
Government Agency of the Executive Branch
Government agencies are defined as organizations, councils, and offices operating under the jurisdiction of the Federal Government of the United States of America; each federal agency retains specific administrative jurisdiction over specific facets latent within the operations of the United States Government.