CUSTOMS MANAGEMENT AND RISKS: IMPACT ON THE DEVELOPMENT OF INTERNATIONAL INNOVATIVE ENTREPRENEURSHIP IN THE AGRICULTURAL SECTOR

Abstract

Agricultural production is one of the most risky business activities. Agrarian reforms and the establishment of market relations, changes in ownership and business forms significantly increase the degree of uncertainty of socio-economic processes in agriculture and, accordingly, increase the impact of risks on agricultural business. Modern agricultural enterprises can significantly improve the efficiency of their operations by using various risk management tools. Derivative financial instruments can significantly reduce the negative impact of price fluctuations on the financial condition of agricultural entities. The destructive impact of external and internal factors on the activities of agribusiness entities has determined the evolution of theoretical and practical approaches to risk management. In the theoretical plane, there was a gradual transition from the perception of risk as an objective factor of agricultural activity to the separation of risk theory as a science and risk management in the overall management strategy of an agricultural enterprise. This transformation of scientific views on risk and the possibility of influencing its qualitative and quantitative parameters and changes in conceptual provisions is reflected in modern risk management. The riskiness of the agricultural business is determined by the following main factors: seasonal nature of production, high degree of dependence on climatic conditions, imbalances in the supply of food to the world, etc. In this regard, building an effective risk management system is turning into an important element of macro-financial stabilization and financial strategy of agricultural enterprises, becoming one of the most important factors in ensuring the sustainability of the industry and counteracting crisis phenomena.