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Risk and uncertainty in the functioning of the agricultural economy

Author(s) Журавель Р. О., , ,
Category Economics
year 2022 issue Issue number 101. Part 2
pages 283-292 index UDK 332.365
DOI 10.32782/2415-8240-2022-101-2-283-292 (Link)
Abstract The functioning of the agricultural sector of the economy is associated with the probability of not achieving the planned results from the measures taken. This is a consequence of the existence of various forms of risk inherent in any human activity. today there is no single, comprehensive definition of this term. The specified category is used in many fields of knowledge and has a complex nature. The main criteria for the formation of the concept of "risk" are the probability of deviation of the actual results from the planned ones; probability or possibility of loss (or income) and uncertainty. It should be noted that uncertainty is a source of risk. That is, risk is a product of uncertainty. It appears with the awareness of uncertainty and grows with its growth and the amount of capital involved. In practice, the terms risk and uncertainty are often found together, but they are not identical concepts, the result of economic activity is formed in a multidimensional space of uncertainty under the influence of factors of both the internal and external environment, which are constantly changing. This uncertainty about the final outcome sets the framework for risk. That is, uncertainty is a necessary and sufficient condition for the occurrence of risk. Therefore, the risk itself should be identified with a choice, and not with an inevitable event. Risk can be measured whenever information is available that allows an assessment of the current situation in terms of estimating the potential losses or gains associated with a certain activity, that is, predicting the consequences of future events. Regarding the risks and uncertainties in the agricultural sector of the economy, it is necessary, first of all, to take into account the peculiarities of its functioning. the conducted studies allow us to conclude about the existence of a significant number of risks that may arise in the course of agricultural activity under the influence of various factors. The conducted studies allow us to draw a conclusion about the existence of a significant number of risks that may arise in the course of agricultural activity under the influence of various factors.
Key words risks, uncertainty, types of risks, sources of risks, agrarian sphere of economy
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