RISKS OF ECONOMIC ACTIVITIES OF AGRICULTURAL ENTERPRISES AND THEIR NEUTRALIZATION IN THE CONDITIONS OF ACTIVE COMBAT ACTIONS

Keywords: agricultural enterprise, risk, mechanism, neutralization, active hostilities, impact of risks

Abstract

The presented work examines the issues related to the risks that arise at agricultural enterprises during the military conflict. The authors consider the main risks affecting the activity of agricultural enterprises. It is well-founded that military actions in Ukraine provoke risks in the agrarian sector of the economy, the consequences of which can be unpredictable. The risk neutralization algorithm is presented, which involves the implementation of a number of measures: risk identification, risk assessment, development of a risk minimization strategy, implementation of a risk minimization strategy, monitoring and updating of strategies. measures that can be taken by enterprises to reduce the negative consequences of military actions on the territory of Ukraine. The risk of a decrease in the production of agricultural products, which is formed under the influence of such actors as infrastructure damage, loss of access to land plots, labor shortage, inaccessibility to raw materials, is revealed. The risks of the activities of agricultural enterprises in the conditions of military operations on the territory of Ukraine are summarized: the risk of a decrease in production, the risk of deterioration of storage and transportation conditions; the risk of a decrease in demand for agricultural products; the risk of changes in the market situation. The mechanisms that help to neutralize these risks are disclosed: the mechanism of production diversification; use of insurance policies; a mechanism for strengthening activity security; mechanism of development of alternative sales markets; the mechanism of state support for agricultural enterprises. It is justified that it is important to have a thorough analysis of risks and to develop an action plan for each possible scenario of their minimization/liquidation, which will allow to respond more effectively to undesirable events and ensure the stability of the enterprise's economic activity.

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Published
2024-02-29
How to Cite
Hryvkivska, O., & Heizha, Y. (2024). RISKS OF ECONOMIC ACTIVITIES OF AGRICULTURAL ENTERPRISES AND THEIR NEUTRALIZATION IN THE CONDITIONS OF ACTIVE COMBAT ACTIONS. Kyiv Economic Scientific Journal, (4), 43-48. https://doi.org/10.32782/2786-765X/2024-4-5
Section
SCIENTIFIC ARTICLES