Agriculture sector risk management

Abstract

Agriculture sector is characterized by a particular specificity that is not considered in other fields and because of that agriculture sector is defined as highly risky sector. Response to risk is still very important and responsible activity in this field. According to this, the process and applied strategies of risk management make and ensure that the sector activity and operations are more stable and effective. The aim of the article reflects the need to distinguish the most appropriate agricultural risk management tools in order to manage agricultural risks as effectively as possible. In the article the agricultural risk management tools are distinguished and after that the advantages and disadvantages of it are presented and the possibilities of mentioned tools are analyzed. Using agricultural risk management tools, the important interactions between agricultural risks and risks management instruments are discovered. The aim of the article is reflected by studied conception of risk and agricultural risk types, explored risks sources and specificity of agriculture sector.