THE IMPORTANCE OF FINANCIAL RISK ASSESSMENT IN THE AGRICULTURAL SECTOR

Abstract

Financial risk assessment is crucial in the agricultural sector as it helps farmers, agribusinesses and other stakeholders make informed decisions to manage and mitigate financial challenges and uncertainties. In this sector, various factors such as weather conditions, market fluctuations, input costs and government policies can significantly affect financial stability and profitability. A comprehensive assessment of financial risks allows agricultural enterprises to identify potential risks, assess their potential impact and develop strategies for effective management of these risks. This article provides information on the importance of financial risk assessment in the agricultural sector.