Classification of agribusiness risks in modern conditions of managing

Abstract

Risk and uncertainty are always present in agricultural production. Therefore, any action the farmer brings the possibility of failure, loss, is risky. In conditions of market relations in the entrepreneur increases the risk of losses in the industrial, commercial and financial areas. Therefore, to minimize the losses, one need to manage risk. Risk management – the process of identifying the level of uncertainty, making management decisions that prevent, reduce the negative impact of random factors, the transmission (transfer) risk through the use of effective risk insurance system or the development of risk. To do this, one must analyze the causes and factors of its occurrence, the possible consequences, to know and to use the methods, indicators of its impact on results of operations, methods and sources of its undesirable effects. Risk assessment process faced by the farmer, and to minimize the costs associated with these risks, called risk management. A businessman should know how to reduce the likelihood of risk; it must be capable of reducing the risk of negative consequences, even in the most adverse circumstances.