Organizational and Managerial Mechanism for Risk Management of Agricultural Enterprises

The article h ighlights issues re lated to t he study o f the appro ach to assess ing and an alyzing the r isks of ag ricultural e nterprises. A n approach to co nducting a fu ll-fledged co mprehensive a nalysis of r isks and f actors inf luencing t hem with t he help of i ndicators fo r assessing f inancial pe rformance is desc ribed. An a lgorithm fo r assessing r isks based o n calculat ing the depe ndence of t he size of assets, t he margin o f financia l strength a nd the leve rage of product ion leverage a nd its effect is co nsidered. T he methodo logy and resu lts of rese arch on the p ractical study o f farms in t he Krasnod ar Territo ry in terms o f the leve l of financ ial strengt h in grain p roducts and c attle meat a re presented. Co nclusions a re made about t he degree o f risk exposu re of these types o f industries, t he features o f the resu lts of dive rsificatio n in agricu lture are reve aled.


Introduction
To ensure t he effective fu nctioning o f agricultu ral enterp rises in t he context o f the deve lopment of a mode rn economic syste m, it is i mportant to c arry out a syste matic analys is of the r isks of the ir functio ning, includ ing studyi ng and assess ing the poss ible results o f the impact o f risks on t he organiz ation and m anagement o f productio n in the ag ricultural secto r [1][2][3][4].
Analysis o f the works o f modern rese archers [5][6][7][8] s howed a mo re acceptab le way to a nalyze the r isks of the ir manageme nt using f inancial i ndicators o f agricultu ral enterp rises. In t he course o f the study, a set o f financia l indicato rs was for med, such as p roduction leve rage, fina ncial stre ngth margi n and the e ffect of p roduction leve rage [9][10][11][12], w hich make it poss ible to assess t he degree o f risk imp act on the e fficiency o f agricultu ral enterp rises.
As a result o f the study, it w as concluded t hat the most significant r isk factors a re interna l factors o f productio n, presented o n the basis o f an analys is of a sa mple of ag ricultural e nterprises i n the Kras nodar Terr itory spec ializing i n the product ion of gra in and catt le meat. [ 1 3-16]. In co nnection w ith the above resu lt of the study, it is t hat the fe atures of t he results o f diversif ication in ag riculture we re identif ied and subst antiated.
The aim of t he study is to deve lop an app roach to assess ing the ris k of agricu ltural ente rprises based o n financia l performa nce indicato rs, as wel l as a pract ical study o f the facto rs affecti ng its actu al value.

Materials and methods
With the t ransition to a m arket econo my, a free c hoice of types a nd directio ns of econo mic activity, i ndependence i n managing a n organizat ion led to a n increased leve l of respo nsibility fo r ensuring t he sustain able funct ioning of a n agricultu ral organi zation. T his has led to t he priorit ization of r isk and the need to m anage it.
In practic al calculat ions, to dete rmine the r isk, margin a nalysis is used, t he ratio o f the so-c alled gross m argin (the resu lt from sa les after re imbursement o f variable costs) to p rofit. The st rength of t he influence o f the product ion leverage depe nds on the re lative mag nitude of f ixed costs [ 6]. The i ntroductio n of product ion automat ion in agr iculture le ads to a re lative inc rease in f ixed costs a nd, accord ingly, to a dec rease in t he share o f variable costs i n the unit cost. T his circumst ance affects t he gross m argin ratio, t he thresho ld of prof itability a nd other e lements of ope rational a nalysis in d ifferent w ays (Table 1). Table 1. Level and dy namics of key i ndicators o f risk ana lysis of ag ricultural enterprises, Source: [5][6][7][8][9].

Intensification of direct labor Comments
Production lever Above Below Operational leve rage as a me asure of i nvolving f ixed costs i n automated m anufacturi ng General leve l of risk assoc iated with bus iness activ ities Above Below The risk f actor accu mulates al l of the above f actors Gross margin ratio Above Below Variable costs i n automated m anufacturi ng are rel atively lowe r Range of accept able manage ment solut ions Narrower Wider With high f ixed costs i n automated p roduction, m anagement is mo re "locked", t hat is, it h as fewer opt ions for c hoosing so lutions Financial safety margin Below Above Due to the h igher prof itability t hreshold i n automated m anufacturi ng, the fi nancial sa fety margi n is usual ly lower Thus, it is c lear that t he risk assess ment in te rms of product ion leverage is t he most app ropriate fo r most agr icultural e nterprises.

Results
Risks in t he financi al activit ies of agr icultural e nterprises, i n contrast to p roduction, supp ly and othe r types of act ivities, a re more di fficult to assess d irectly due to t he lack of ge neralizing i ndicators o r the imposs ibility of qu antitative me asurement. To dete rmine the leve l of solve ncy, it is necess ary to find out t he size and st ructure of t he organiz ation's debt, to dete rmine the poss ibility of cove ring it.
Solvency must be dete rmined in o rder to fi nd out what s hare of its debts a nd in what t ime frame t he organiz ation can rep ay. The f irst step i n determin ing it is t he calculat ion of the so lvency rat ios, which a re calculated subject to t he availab ility of ow n funds, sett lement wit h debtors, s ale of wor king capit al, etc.
To establis h the degree o f solvency o n average pe r farm in t he Krasnod ar Territo ry, conside r the solve ncy indicato rs. The resu lts of calcu lations on ave rage per 1 f arm in the reg ion are show n in Table 2. Thus, the a nalysis of t his table s howed that, desp ite the rest ructuring o f a signif icant part o f debt obl igations, f arms still h ave debts fo r all types o f payments, a lthough the te rms of its poss ible repay ment have so mewhat dec reased [10].
For a full-fledged co mprehensive a nalysis of f inancial r isk and the f actors inf luencing it, f irst of al l, the mai n indicato rs characte ristic of m arginal an alysis were c alculated, w hich serves as t he most ef fective met hod of fin ancial ana lysis for t he purpose o f operatio nal and st rategic pl anning, tr acking the depe ndence of f inancial resu lts on costs a nd product ion volumes. T able 3 shows t he depende nce on the r atio of fi xed and va riable costs p resented i n the table o f indicato rs.
The calcul ation resu lts show p roblem are as in the act ivities of t he studied o rganizatio ns. So, with a n increase i n fixed costs i n relation to v ariables, bot h revenue a nd profit f rom sales, a nd gross m argin, and t he thresho ld of prof itability, a nd the marg in of fina ncial stre ngth decre ase [11]. The described te ndency is typ ical for t he overwhe lming majo rity of org anizations rep resented i n the group, w ith the except ion of seve ral atypic al organiz ations of t he first g roup, whic h are char acterized by a r atio of less t han 5%.
Thus, it is obv ious that w ith an inc rease in p roduction leve rage (over 10%), bot h the resu lts of the o rganizatio n's activit ies and fi nancial st ability (m argin of f inancial st rength) dete riorate. A nalysis of t he average i nitial dat a on the r atio of fi xed and va riable costs is p resented i n Table 4. According to T able 4, the re is a te ndency to dec rease the abso lute average v alues for g roups of bot h fixed and v ariable costs w ith an inc rease in t he leverage o f productio n leverage.
Thus, it c an be assu med that t here is an i nverse rel ationship betwee n the size o f organizat ions, whic h partly c haracterizes bot h the cost, a nd the rat io of fixed a nd variable costs.
To confirm o r refute t he assumpt ion made, let us a nalyze the d ata presented i n Tables 5 a nd 6. According to T able 5, it c an be seen t hat the si ze of both c irculating a nd non-circu lating assets dec reases wit h increasi ng leverage, t here is no co nnection w ith the coe fficient o f speciali zation. Table 6 prese nts data o n the main co mponents o f the product ion potent ial of org anizations, w hich characte rize their s ize. These tables a lso confir m the assu mption made about t he inverse re lationship betwee n the size o f the orga nization a nd the leve rage of product ion.
The "dead ce nter" (or c ritical sa les volume) met hod as app lied to assess ing and pred icting the e ffect of leve rage consists i n determin ing for eac h specific s ituation t he volume o f output t hat ensures b reak-even act ivity.

Discussion of the results
For a comp rehensive a nalysis of t he level o f financia l strength, t he influence o f a number o f factors o n this ind icator was a nalyzed [12].
The object o f the study w as 100 far ms from di fferent dist ricts of t he Krasnod ar Territo ry. Consider t he relatio nship betwee n the leve l of financ ial strengt h in the eco nomy as a w hole with t he main pe rformance resu lts. The data a re presented i n Table 7. Thus, based o n the above, we c an conclude t hat despite t he fact th at a small o rganizatio n is conside red predom inant over a l arge one, re ality proves so mething co mpletely d ifferent.
The object ive modern need o f the econo my for the co ncentratio n and cent ralization o f productio n and capit al has conv incingly p roved the need to e nlarge agr icultural o rganizatio ns.
The margin o f financia l strength, c alculated fo r the econo my as a who le, does not a llow us to ide ntify the ro le of cert ain types o f products i n shaping t he result f rom sales.
This can be do ne by calcu lating the t hreshold o f profitab ility for ce rtain types o f products, w hich accou nt for a l arger share i n the tota l volume o f products so ld, in agr iculture, suc h products i nclude: gr ain, cattle me at and mil k.
The groupi ng of farms by t he level o f financia l strength, c alculated by g rain, is p resented i n Table 8. Table 8.  The analys is showed t hat with a n increase i n the marg in of fina ncial stre ngth, there is a n increase i n such ind icators as s ales proceeds a nd product s ales.
Thus, unde r the curre nt conditio ns, even t he grain i ndustry, w hich is co nsidered to be t he most pro fitable, is e xposed to r isk due to t he instabi lity of gr ain prices a nd an incre ase in the cost o f its product ion, due to t he growth o f both fixed a nd variable costs [13].
In additio n to grain, t he product ion direct ion of the o rganizatio n is deter mined by c attle meat a nd milk, t he calculat ion for wh ich is prese nted in Tab les 9 and 10. The analys is showed t hat with a n increase i n the marg in of fina ncial stre ngth, there is a n increase i n indicato rs such as s ales proceeds, p roduct sales a nd the sales p rice of 1 ce nt. The o rganizatio ns of the f irst group h ave not re ached the t hreshold o f profitab ility eithe r in physic al terms o r in monet ary terms. Fo r the othe r three groups, t his indicato r is incre asing. Thus, the most at r isk is the p roduction a nd sale of c attle meat, t he less ris ky is the p roduction a nd sale of g rain.
The analys is of the st ructure of m arketable p roducts of o rganizatio ns of the K rasnodar Te rritory fo r 2020 showed t hat the ma in products o f speciali zation of f arms are g rain, catt le meat. O n average, t hey account fo r about 55% o f marketab le products [14]. Changes i n the structu re of comme rcial products a re associated, f irst of al l, not wit h changes i n priorities, but w ith a low leve l of crop p roduction, i n some yea rs, due to u nfavorable we ather cond itions.

Conclusions
The results o f the study s howed that t he most pre ferable fo r organizat ions of the K rasnodar Te rritory is t he plant g rowing indust ry in gene ral and gr ain specia lization, i n particul ar. Howeve r, the int roduction o f grain spec ialization t hat is opt imal, from t he point o f view of t he planned leve l of profit ability, i n real eco nomic cond itions can le ad to negat ive conseque nces in the reg ional econo my and losses i n the econo my, to an i ncrease in r isk factors.
The conducted rese arch has s hown how s ignificant is t he influence o f internal f actors on t he level o f risk [15][16]. So, as a c riterion fo r assessing t he magnitude o f risk were t aken indic ators such as t he leverage o f productio n leverage, t he financi al strengt h of the o rganizatio n and the actu al effect o f productio n leverage. W hen justify ing the adv isability o f using a m argin of f inancial st rength, the fo llowing prov isions shou ld be adhe red to: -the like lihood of i ncurring losses is h igher for t hose econo mic entities w hose financ ial strengt h is less; -with an i nsignifica nt margin o f financia l strength, a ny failure i n the entrep reneurial act ivity of t he organiz ation will le ad to a loss o f revenue; -a decre ase in reve nue for ma ny organiz ations mea ns that they w ill not be ab le to achieve a c ritical vo lume of sa les and the resu lt of thei r activities w ill be a loss.
In connect ion with t he above study resu lt, it is t hat the fe atures of t he results o f diversif ication in ag riculture h ave been ide ntified. So, i f traditio nally it is be lieved that mo re diversi fied product ion is less e xposed to r isk and mo re sustain able, then i n agricultu re, excess ive divers ification, o n the cont rary, leads to a dete rioration i n the resu lts of act ivities in co mparison w ith mono-spec ialized org anizations. T hus, divers ification, a n important r isk reduct ion method, must be used w ith cautio n in agricu lture.