Studies on Efficient Risk Management Strategies in Agribusiness

Abstract

Risk management is a process through which potential risks that could affect the achievement of objectives are identified, evaluated, and managed. The risk analysis is necessary because, in the current period, society is facing numerous challenges, especially due to changing climate conditions and legislative fluctuations within the business environment. Thus, this paper seeks the best options to reduce risks within the company and to find viable solutions so that the company remains profitable and sustainable in the medium and long term. The main objective of this paper is to analyze the risks facing a business in the current context of climate change, specifically conducting a risk analysis aimed at improving conditions and determining success in businesses that focus on the commercialization of inputs. The proposed research methodology included several stages, such as reviewing specialized literature, identifying the market structure, understanding the importance of economic indicators, and quantifying the economic and social impact within the organization. The applications used and recommended to farmers help eliminate the risk of improper crop maintenance. Additionally, the partnership with an insurer provides increased financial security for the company. CZU: 338.436.33:[005.52:005.334]; JEL: Q01, Q10, Q12, Q14, Q16