FINANCIAL MECHANISM OF RISK MANAGEMENT FOR SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR OF THE ECONOMY
Abstract
The article discusses the feasibility of risk management in the process of agricultural activity by a business entity. Currently, any enterprise, in particular in the agricultural sector, on the economic market strives to achieve the maximum positive financial result, which will become a guarantor of its financial stability and profitability. Different interpretations of the essence of financial risk are being formed. However, it should not be perceived only as a negative factor in the activities of companies. Risk is both the possibility of losing funds and the possibility of increasing them. An attempt was made to formulate the essence and generalize the types of main risks and to identify tools for their management. Aspects of the implementation of risk management mechanisms that take place in market conditions are studied. It is substantiated that when implementing innovative technologies of agricultural production management, protection against risks becomes relevant. Conclusions regarding the effectiveness of influence tools on the sustainable development of agrarian formations were formed. The agrarian sphere, like any other branch of the economy, is characterized by its own characteristics, which affect certain specifics of risk manifestations. The essence of financial risks, their classification, impact on the financial condition of enterprises is considered. It is substantiated that the management of financial risks is closely related to the implementation of the following ways of financial improvement of the enterprise, such as: the stability of the effective financial and economic state of the enterprise; ensuring the successful operation of the business entity; preservation of sufficiently high rates of development of the subject; legal protection of all participants in economic activity. Proposed measures to reduce the impact of financial risks on the results of production activities of enterprises. In order to ensure the financial security of the enterprise, the areas of financial risk management have been formed. Realization of the existing potential is possible only under the conditions of neutralization and minimization of existing risks, as well as achieving an acceptable level of risks for farmers. Therefore, proper risk management is one of the main tasks in the process of managing the activities of the agricultural sector.
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