Actual problems of innovative economy and law

Journal "Actual problems of innovative economy and law" is included in category B for specialties: in the field of knowledge "Management and administration": 073, 076 (order of the Ministry of Education and Science of Ukraine dated 23.08.2023 No. 1035) and 071, 072, 075 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543); in the field of knowledge "Social and behavioral sciences" 051 (order of the Ministry of Education and Science of Ukraine dated August 23, 2023 No. 1035); in the field of knowledge "Law" - 081 and "Public management and administration" - 281 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543).
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Financial mechanisms for ensuring the economic security of agribusiness entities

# 11 55-58 Download/view the full text of the article

УДК: 330.34:338.43:336.02

DOI: https://doi.org/10.36887/2524-0455-2024-5-11

Bohdaniuk Ihor,
PhD in Law, Senior Researcher, Deputy Director for Organizational and Scientific Work and Technology Transfer,
Livestock Farming National Academy of Agrarian Sciences of Ukraine,
https://orcid.org/0000-0003-4782-9986

The article is dedicated to examining financial mechanisms that ensure the economic security of agribusiness entities. It highlights the significant challenges facing agricultural enterprises in the current climate of economic uncertainty, including climate change, market volatility, and insufficient financial planning. The study emphasizes the importance of economic security as a cornerstone for agribusiness entities’ stable functioning and development, ensuring resilience to internal and external challenges. The research explores theoretical and practical approaches to assessing economic security and analyzing financial indicators such as profitability, liquidity, solvency, and financial stability. The study identifies key tools for managing financial risks, including diversification of income sources, formation of reserve capital, insurance mechanisms, and investment attraction. Special attention is given to innovative technologies such as blockchain and analytical systems to enhance financial transparency, risk mitigation, and operational efficiency. The research outlines the advantages of diversification, which reduces dependency on a single revenue source, thus minimizing financial risks. Insurance mechanisms, particularly agricultural insurance, are emphasized as practical tools for mitigating the financial consequences of unpredictable events such as climate-related disasters or economic crises. Investment attraction is highlighted as a critical mechanism for modernizing equipment, implementing innovative technologies, and expanding production capacities, thereby improving the competitive position of agribusiness entities on both national and global levels. The research also discusses the significance of adapting to market fluctuations through effective financial planning and budgeting. Hedging strategies in agricultural markets are presented as essential tools for stabilizing income despite price changes. The study concludes that implementing comprehensive financial mechanisms enhances the economic security of agribusiness entities.

Keywords: economic security, financial mechanisms, agribusiness, diversification, innovative technologies, risk management, financial planning, blockchain.

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The article was received 15.08.2024

Quote article, APA style

Bohdaniuk I. 15.08.2024. Financial mechanisms for ensuring the economic security of agribusiness entities. Actual problems of innovative economy and law. 2024. №5. 55-58 pp. https://doi.org/10.36887/2524-0455-2024-5-11

Quote article, MLA style

Bohdaniuk I. Financial mechanisms for ensuring the economic security of agribusiness entities. Actual problems of innovative economy and law. 15.08.2024. https://doi.org/10.36887/2524-0455-2024-5-11