Risk management in agriculture

Abstract

This paper is a result of the theoretical and methodological part of a PhD research on risk management in agriculture, done at the department of economics, Agricultural University – Plovdiv. All businesses are exposed to risk. Uncertainty and volatility are growing in the changing world. Usually the risk is associated with the probability of different negative influences on the business process, which can reduce or destroy expected outcomes. Risks cannot be fully avoided in any business, especially in agriculture, but they can be managed in order to minimize their impact. Agricultural producers tend to be exposed to more risks with greater magnitudes compared to other economic sectors, and still the availability of specialized risk management tools is lagging (EC, 2017). The aim of this research is to explore the possible risks in agriculture and the related theoretical concepts for their assessment, as well as to outline some of the most advanced management methods and instruments applied in practice for prevention and control.