Methodological Basis for Justification of the Risk-Oriented Strategy Development: The Case of a Grain Trading Company
O.Yu. Gavel,
A.Yu. Usanov,
V.I. Barilenko,
V.V. Rokotyanskaya and
N.V. Valuiskov
European Research Studies Journal, 2018, vol. XXI, issue Special 2, 312-322
Abstract:
The article discusses the perspectives of hedging instruments used for justification and monitoring the effectiveness of risk-oriented strategies of development of grain trading companies. The analytical tools that support decision-making under risk in agriculture are identified. The characteristics of the occurrence and realization of the risk factors in the grain market, the destructive potential of individual risks of agribusiness are also investigated. The method of strategy development in conditions of high uncertainty in terms of the price on grain and derived products are proposed. It includes identification and assessment of the potential effects of risks, revealing the most dangerous risks for hedging by mean of option models and derivatives. Analytical model for justification of risk-oriented strategy for grain traders companies allows maintaining its financial sustainability regardless of the state of the grain business traditional risks. It positively affects on the key factors of the market value.
Keywords: Agriculture, Grain Trading; Justification of Strategy, Risk, Hedging. (search for similar items in EconPapers)
JEL-codes: L10 Q17 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxi:y:2018:i:special2:p:312-322
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