Business risks in managing the economic development of an agro-industrial complex enterprise

Relevance. This scientific article examines the key aspects of financial risk management in the agro-industrial complex. The study is based on an analysis of the price volatility of grain, fertilizers and fuel over the past five years. The results obtained make it possible to identify effective risk management strategies, including the use of financial instruments, and provide practical recommendations for agricultural enterprises. The conclusions of the study can contribute to increasing the stability of the profitability of agribusiness with the variability of prices for raw materials.The purpose of the scientific article is to conduct a comprehensive study to assess financial risks in the agroindustrial complex. The research is aimed at analyzing the price volatility of key raw materials, developing effective risk management strategies, as well as providing practical recommendations for agricultural enterprises. Objectives: development of a model for assessing financial risks in agribusiness based on the analysis of price volatility of grain, fertilizers and fuel over the past five years; research on the effectiveness of financial instruments, such as grain options, to mitigate risks when investing in agricultural production; development of practical recommendations for agricultural enterprises, including diversification of the investment portfolio and the use of financial instruments based on calculations and analysis; Methodology. The methods used in the course of the study include a variety of bibliographic sources, data collection tools, as well as expert approaches. Results. The results of the study include a comprehensive assessment of financial risks in agribusiness based on the analysis of price volatility of key raw materials. This made it possible to identify effective risk management strategies, such as the use of grain options, to ensure stable profitability while reducing the level of financial risk. Conclusions. The results obtained in the course of the study provide practical recommendations for agricultural enterprises on effective financial risk management. Developed strategies, such as the use of grain options, can help reduce the impact of price volatility on profitability, ensuring a more stable financial position of the enterprise.

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Publication Details

Journal
Proceedings of the Southwest State University Series Economics Sociology and Management
Published
2024-12-06
DOI
https://doi.org/10.21869/2223-1552-2024-14-5-171-178
Primary Topic
Digitalization and Economic Development in Agriculture
Type
article
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article

Business risks in managing the economic development of an agro-industrial complex enterprise

E. A. Bessonova, Marina Alekseeva, A. V. Savelev
Proceedings of the Southwest State University Series Economics Sociology and Management
Digitalization and Economic Development in Agriculture
article

Business risks in managing the economic development of an agro-industrial complex enterprise

E. A. Bessonova, Marina Alekseeva, A. V. Savelev
article en

Abstract

Relevance. This scientific article examines the key aspects of financial risk management in the agro-industrial complex. The study is based on an analysis of the price volatility of grain, fertilizers and fuel over the past five years. The results obtained make it possible to identify effective risk management strategies, including the use of financial instruments, and provide practical recommendations for agricultural enterprises. The conclusions of the study can contribute to increasing the stability of the profitability of agribusiness with the variability of prices for raw materials.The purpose of the scientific article is to conduct a comprehensive study to assess financial risks in the agroindustrial complex. The research is aimed at analyzing the price volatility of key raw materials, developing effective risk management strategies, as well as providing practical recommendations for agricultural enterprises. Objectives: development of a model for assessing financial risks in agribusiness based on the analysis of price volatility of grain, fertilizers and fuel over the past five years; research on the effectiveness of financial instruments, such as grain options, to mitigate risks when investing in agricultural production; development of practical recommendations for agricultural enterprises, including diversification of the investment portfolio and the use of financial instruments based on calculations and analysis; Methodology. The methods used in the course of the study include a variety of bibliographic sources, data collection tools, as well as expert approaches. Results. The results of the study include a comprehensive assessment of financial risks in agribusiness based on the analysis of price volatility of key raw materials. This made it possible to identify effective risk management strategies, such as the use of grain options, to ensure stable profitability while reducing the level of financial risk. Conclusions. The results obtained in the course of the study provide practical recommendations for agricultural enterprises on effective financial risk management. Developed strategies, such as the use of grain options, can help reduce the impact of price volatility on profitability, ensuring a more stable financial position of the enterprise.

Proceedings of the Southwest State University Series Economics Sociology and ManagementVol. 14(5)
Southwest Minnesota State University (US)
Openalex Percentile: Top 61%
Digitalization and Economic Development in Agriculture
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