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Kuban State Agrarian University is a university located in Krasnodar, a city in southern Russia.

Journal Article

Journal article

FINANCIAL RISK ASSESSMENT OF AN AGRICULTURAL COMPANY ACCORDING TO REPORTING  [2015]

Kraskova A. A.; Zatonskaya S. S.; Zatonskaya I. V.; Kuban State Agrarian University [Corporate Author]

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The instruments of increasing competitive stability and decreasing financial risk of the company in the conditions of an economic crisis are considered in this article. The process of production in agriculture is closely related to the natural biological processes. Animals and plants function as means of production, and they are living organisms, developing on the biological laws that determine the dependence of the production process in the agricultural sector on natural factors. Besides, various soil climatic conditions have impact on results of economic activity of agricultural producers. Therefore, companies that work in rather worse natural zones are less competitive. The price factor doesn't provide financial well-being and doesn't reduce risk of bankrupt to such organizations. The economic situation in the country, emergence of new financial instruments and some other factors has essential impact on results of economic activity of an agrarian enterprise. Thus, the activity of the company in all its forms is connected with numerous risks, thus, financial risks play an essential role, generally, "a portfolio of risks". In this regard, an actual task in practice of an agrarian enterprise is the assessment of level of financial risk on the basis of accounting reports: the balance sheet records the financial situations of the organization at reporting date, and the report profits and losses results of financial activity. The system of internal control in
various directions is necessary for risk management: acquisition of raw materials and materials, product sales, logistics, personals, finance and capital investments. A possibility of an agrarian company to estimate, to control and to operate its own risks is important competitive advantage, allowing to create financial and steady structure of the organization

From the journal

Polythematic Online Scientific Journal of Kuban State Agrarian University

ISSN : 1990-4665