ФІНАНСОВИЙ МЕХАНІЗМ УПРАВЛІННЯ РИЗИКАМИ СТАЛОГО РОЗВИТКУ АГРАРНОГО СЕКТОРУ ЕКОНОМІКИ

Abstract

The article considers the effectiveness of risk management in the process of implementation of agricultural activities by enterprises. Currently, all enterprises in the economic market, especially in the agricultural sector, strive to achieve the highest possible performance, guaranteeing financial stability and profitability. The nature of financial risk can be interpreted in different ways. However, one should not consider risk only as a negative factor in entrepreneurial activity. Risk is both the possibility of loss of funds and the possibility of their increase. The attempt to formulate the essence of the main risks, to summarize their types and to determine the management measures is made. The aspects of realization of risk management mechanisms occurring in the market environment have been studied. The results obtained show the importance of risk protection in the implementation of innovative technologies of agricultural production management. Conclusions are made about the effectiveness of instruments of influence on the sustainable development of the agrarian structure. Agricultural land, as well as other sectors of the economy, have characteristics that affect the specificity of the manifestation of risks. The nature of financial risks, their classification and influence on the financial condition of enterprises are considered. It is established that financial risk management is closely related to the implementation of methods of financial recovery of the enterprise, including effective financial and economic stability of the enterprise, ensuring smooth operation of economic entities, maintaining adequate rates of enterprise development and legal protection of all participants of economic activity. Proposed are steps to mitigate the influence of financial risks on the enterprise’s production outcomes. The domain of financial risk management is structured to safeguard the financial stability of the enterprise. Unlocking the potential is feasible when existing risks are countered or reduced, enabling farmers to attain an acceptable risk level. Hence, effective risk management becomes a crucial objective in overseeing agricultural sector activities.