Monitoring of economic risks of business activities

Matveev V.V.
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Matveev V.V.: Orel State Agrarian University named after N.V. Parakhin

Russian Journal of Agricultural and Socio-Economic Sciences, 2016, vol. 55, issue 7, 72-79

Abstract: Modern macroeconomic situation around political and economic space of Russia is rather complicated and ambiguous. It has a direct detrimental effect on the majority of macroeconomic indicators, including indicators on the labor markets, securities, foreign exchange markets, the standard of living of the population, the pace of social development and welfare, and ultimately on the economy as a whole. These circumstances serve as a catalyst to the top of the reform and transformation of the different segments of the national economy. One of the key elements of reform is an entrepreneurship in the agricultural sector, since in current circumstances it is primary element to ensure food security of the country. Furthermore, this responsibility, on the one hand, contributes to an increase in import volumes, stabilizing activity agribusiness companies and increase their competitiveness, and on the other hand, together with the low financial and economic stability of agricultural units and their functioning, creates a high degree of uncertainty to the activity data subjects. As a result, current macroeconomic conditions only help to increase the risk burden on the activity of subjects of agribusiness, which is already one of the most risky types of economic activity because of its close relationship with poorly predicted climatic factors. Therefore, as one of the current directions of the improvement of the agrarian policy of Russia should be provided for the creation of a specialized methodology for monitoring business risks agribusiness entities, aimed at forecasting, identification, prevention and minimization of risks and their adverse effects, such as the methodology for the moment does not exist. The article presents a developed business risk monitoring methodology agribusiness entities through the budgeting system, providing for a redistribution of funds and resources of the economic entity by creating budgets of various levels and the formation of a dedicated reserve fund to cover unexpected losses related to business risks and their adverse effects.

Keywords: MONITORING BUSINESS RISKS; COMPETITIVENESS; GOVERNANCE; ECONOMICS; AGRIBUSINESS ENTITIES; RESERVE FUND; FORECASTING; PLANNING; BUDGETING; MANAGEMENT DECISIONS; RISK MANAGEMENT (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:scn:031261:16967574

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