Founder and publisher – Russian Scientific Research Institute of Land Improvement Problems
Land Reclamation and Hydraulic Engineering Melioraciâ i gidrotehnika
ISSN 2712-9357
RUS / ENG

RISK MANAGEMENT OF THE ENTREPRENEUR STRUCTURES IN AGRICULTURE

Annotation

Risks are inherent in all sectors and business structures of the economy. But in agriculture risks are the most complicated because of its specifics consisting in the direct dependence of the climate conditions and biological qualities of the product. Production and selling of the agricultural products are connected with the probability of profit or resources loosing and producer’s bankruptcy. Risks can impel the agent of management to accept excessively safe strategy which will hold back the development. To increase the effectiveness of management decisions risk control arrangements should be designed. Under current conditions risk minimization and uncertainty overcoming in agricultural production are connected with the situation analysis, developing, and substantiating of management decisions for decreasing the degree of risk impact. Besides it is necessary to pay special attention for improving risk management in practice what allow decreasing the risk of business structures in agriculture and increasing their stability. The important point for agricultural businessmen is the development of guidelines on selecting the methods for risk assessment and impact on risk. The ability to assess the situation, develop and realize the complex of measures that allowing to reduce the risk to an acceptable level, as well as to estimate decision making consequences is of paramount importance and required for successful business of entrepreneur structures in agriculture.

Authors

Affiliation: All-russian Research Institute of Economics and Standards of the Russian Academy of Agricultural Sciences

Position: Senior Researcher

E-mail: olka-kirsanova@yandex.ru

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