A MULTI-LEVEL APPROACH TO AGRIBUSINESS RISK MANAGEMENT IN TIMES OF WAR

Abstract

Introduction. Risk is an inherent part of entrepreneurial activity. The agricultural sector has a higher level of risk than other business sectors. The risks faced by agricultural entrepreneurs increased significantly during the war. In a challenging economic and security environment, the ability of agricultural enterprises to maintain market competitiveness and grow depends on their ability to identify and effectively manage operational risks. Understanding the nature and extent of potential risks helps agricultural entrepreneurs to take preventive measures or minimize the impact and consequences of these risks. Purpose. The purpose of the article is to substantiate a multi-level approach to risk assessment for the successful functioning of agribusiness both in war and post-war conditions. Methods. The paper uses the theoretical method based on the analysis of theories and concepts; the statistical method, which includes processing statistical data and drawing conclusions; and the analytical method, which is used to analyze complex problems and identify patterns. Results. In the course of its activities, agribusiness faces a number of economic, environmental, geopolitical, social and technological risks, which can be divided into corporate, national, interstate and global levels according to the scope and area of occurrence. Given that agribusiness is the most risky of all business activities, the military actions on the territory of Ukraine have led to the operation of business in conditions of total uncertainty. Of course, Ukraine's role in the global agri-food market and in ensuring food security is difficult to assess. And even despite the full-scale Russian military aggression, blocking of seaports, blocking of the border by Polish farmers, destruction of infrastructure and supply chains, mining of agricultural land, etc., the domestic agribusiness managed to meet both domestic and global demand for agricultural products. Agriholdings owe their success to effective risk management, which includes a multi-level approach to risk assessment, allowing them to formulate successful strategies for their operation and development. Conclusion. Agribusiness is one of the most risky types of entrepreneurial activity. Russia's full-scale military aggression has forced domestic agricultural enterprises to operate in conditions of total uncertainty. However, despite this, most agricultural holdings managed not only to avoid bankruptcy but also to increase exports of agri-food products. Undoubtedly, agribusinesses owe this position to effective risk management and successful strategies. A key feature of this success is a multi-level approach to risk assessment (not only at the corporate and national level, but also at the international and global levels).