Abstract
This article examines the feasibility of identifying, assessing, and managing financial risks in food industry enterprises. The country’s current economic and political situation directly affects the activities of food industry enterprises. Specific changes in external and internal factors affecting the activities of business entities cause the emergence of various types of financial risks. That is why it is advisable to identify existing financial risks, assess their impact on financial results, and manage such risks to minimize losses. The features of the activities of food industry enterprises in an unstable economic and political situation are presented, including the presence of a large number of receivables, the presence of long-term liabilities in foreign currency, the presence of a relatively significant share of liabilities in the capital structure of enterprises; a high level of current assets. Accordingly, several indicators are presented for evaluating and identifying financial risks. For the analysis, enterprises producing oil and animal fats, meat and meat products, and dairy products were selected as key industries in the food market. This allowed us to identify the following types of financial risks that affect the activities of food industry enterprises: liquidity risk, investment risk, interest rate risk, credit risk, and currency risk. Based on the research, problems were identified in the financing structure and in working with counterparties. Recommendations were made for managing certain types of financial risks: additional financing of equity capital from retained earnings, reduction of current liabilities by improving the cost management system and distribution of financial resources, reduction of receivables, improvement of the revenue management system, and review of financial relations with counterparties; search for new sources of financing at reduced rates; reduction of the number of long-term loans in foreign currency. Conclusions were drawn on the feasibility of further studying the issue of financial risk management. Keywords: financial risks, methods of assessing the impact of financial risks, financial risk management, financial condition, inflation, devaluation, weighted average lending rate.
Published Version
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