MINIMIZING THE RISKS OF ECONOMIC ACTIVITIES IN THE CONTEXT OF BUSINESS MANAGEMENT STRATEGY AGRICULTURAL SECTOR
DOI:
https://doi.org/10.32782/city-development.2024.4-5Keywords:
economic activity, enterprise risks, risk management, nterprise management strategy, risk minimization, agricultural enterprises, diversification, financial instruments, adaptive managementAbstract
The article addresses the issue of minimizing business activity risks in agricultural sector enterprises as a key element of strategic management. The agricultural sector, being a strategically important branch of the economy, is significantly influenced by numerous external and internal factors, leading to increased operational risks. The paper analyzes the main types of risks arising in the business activities of enterprises, including natural-climatic, economic, technological, market, and organizational risks. It is determined that effective risk minimization requires a systematic approach encompassing several aspects: risk identification, assessment of their levels, and the development and implementation of management measures. Particular attention is given to diversification strategies, which help reduce enterprises' dependency on a single source of income or production resources. The article also explores the integration of modern technologies into the risk management process, including automated monitoring and forecasting systems, the use of big data for risk factor analysis, and innovative approaches to resource planning. The role of financial instruments such as insurance, hedging, and the creation of reserve funds is examined as effective mechanisms to mitigate financial losses resulting from risk realization. The study highlights the importance of adaptive management, which ensures a prompt response to changes in the external environment of enterprises and fosters coordination among different organizational units to enhance resilience. It is noted that integrating risk management into the overall strategy of an enterprise enhances its competitiveness, financial stability, and sustainable development in the long term. The recommendations proposed in the article have practical significance for the managers of agricultural enterprises. They contribute to effective business activity planning, reduce losses, and improve the adaptability of enterprises to the challenges of an unstable environment. results of the research can be used as a basis for further scientific developments regarding the minimization of risks in the sphere of implementation of enterprise management strategy.
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