Implementation of risk management at agricultural enterprises: risk identification and financial support

Abstract

The article studies the theoretical aspects of implementing risk management in agricultural enterprises.

It is determined that risk management is an essential tool for ensuring the stable functioning of agricultural enterprises, given their high dependence on natural, economic, and market factors.

It is proven that the main risks in the agricultural sector include natural and climatic risks (droughts, frosts, floods), economic risks (changes in product and resource prices), financial risks (exchange rate instability, access to credit resources), and operational risks (disruptions in supply chains, technical risks). Effective identification and assessment of these risks allow enterprises to develop adaptive strategies.

It was found that before the pandemic, risks in agriculture were focused on natural and economic aspects. In contrast, after COVID-19, risks associated with global crises, logistics, digitalization, and changes in consumer demand were added. This requires the agricultural sector to have more flexible risk management strategies and implement modern technologies to ensure sustainable development.

It is substantiated that the main mechanisms for financial support for risk management are agricultural risk insurance, reserve funds, credit and guarantee instruments, and state support. Diversification of financing sources increases enterprises' financial stability.

It was found that modern methods, such as agro-technological innovations, digital solutions (Big Data, satellite monitoring), strategic planning, and business diversification, are necessary for effective risk management.

In general, effective risk management implementation at agricultural enterprises contributes to increasing their competitiveness, reducing potential losses, and creating prerequisites for the industry's sustainable development.