RISK MANAGEMENT MECHANISM IN THE FUNCTIONING OF AGRICULTURAL ENTERPRISES

Abstract

The article considers aspects of the effectiveness of risk management in the process of performing production activities by agrarian enterprises. The special characteristics of the agricultural sector, which contribute to the emergence of risks, have been determined. A description of the types of risks that are specific to agricultural enterprises in Ukraine is provided. It is highlighted that the underestimation of the impact of risks when forming an enterprise's strategy and making management decisions not only inhibits its development, but also leads to stagnation in the economic system in general. An algorithm was built: the stages of the risk management process at the enterprise were identified, the system of risk management methods at agricultural enterprises was systematized. Risk prevention measures have been identified, among which the use of agricultural land insurance is an important and effective means of countermeasures and avoidance. For land resources, the risk is not sudden, but slow, arising from soil erosion processes. Depending on the main cause of occurrence (basic or natural feature), risks are divided into categories: natural, ecological, economic, commercial, financial. Environmental risks are risks associated with environmental pollution: with the consequences of technogenic impact of agricultural production on the environment. In general, the amount of risk is significantly affected by the type of soil, because improving their fertility leads to quite significant costs. When producing plant and animal products on soils of different quality, it is necessary to focus not only on profitability calculations when growing certain crops, but also on observing scientifically based crop rotations, which would allow to stop the degradation of land resources of agricultural enterprises. According to the results of the data on the condition of the soil of the economic entity, a decision is made on insurance compensation for the amount of real damage caused to land resources, which cannot exceed the level of damage, but must not be lower than the amount of damage. Otherwise, the process of reproduction of land resources will not fulfill its functional purpose.