Land use risk management technology

Harnaha Oleksandr
Ph.D. in Economics, Associate Professor, Associate Professor of the Department of Enterprise Economics and International Business, National University of Water Management and Environmental Engineering, Rivne, Ukraine, E-mail:o.m.gharnagha@nuwm.edu.ua, ORCID ID: https://orcid.org/0000-0002-5236-7299

Cite this article:

Harnaha O. (2024) Land use risk management technology. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Tekhnolohiia upravlinnia ryzykamy v sferi zemlekorystuvannia; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 7-8 (320-321), pp. 63-68.

Abstract

The article is devoted to the coverage of risk management technology in the field of land use. The concept and types of land use risks are revealed. It was emphasized that today risk management is almost the main challenge for the agricultural sector. Having analyzed the experience of most European developed countries, we can conclude that the underestimation of the impact of risks by land users when forming a development strategy and making operational decisions not only slows down their development, but also leads to significant financial losses. Therefore, it is very important to correctly diagnose the possibility of the emergence of risks that become obvious in a timely manner and to make appropriate decisions within the framework of the formulated risk management policy. It is noted that it is extremely important to have the skills to correctly assess the current situation and choose appropriate management measures aimed at reducing the consequences of risks. Risk management technology can be implemented through risk management tools. The process of risk management is defined as the periodic application of policies, practices and procedures to ensure the exchange of information and consultations, as well as the diagnosis of risks, their impact, monitoring, analysis and implementation of documentation, reporting, etc. If we talk about risk identification, it should be noted that it is carried out to determine the parameters of the risk situation. Its purpose is to identify and compile a complete list of risks that can have both a positive and a negative impact on the activities of land use entities. This list should be as complete as possible, since unidentified risks can lead to significant uncertainty in achieving the set goals, loss of control over the process of management and coordination of activities, and failure to use the existing development potential of the land user. The risk management system is formed using a number of measures aimed at minimizing negative consequences, including targeted impact on risk factors. However, before specific risk management measures are implemented, they are first diagnosed, analyzed and quantified. The risk assessment is based on the conducted risk analysis. The main task of risk assessment is to identify hazards and determine the magnitude of the risk. The purpose of risk assessment is to increase the financial and economic security of the agricultural sector. The algorithm for risk assessment of land use subjects and the technology of their management is presented. It was determined that the practical application of the given functionality, taking into account the peculiarities of risk identification in combination with the classic list of components of the management process, will allow to level or minimize their negative impact on the efficiency of economic activity of land use entities.

Keywords

land use, risk management, technology, agricultural products, investment activity, risk identification.

JEL classification: Q500; Q010; Q150; DOI: https://doi.org/10.32680/2409-9260-2024-7-8-320-321-63-68

UD classification: 332.2

References

1. Tomilin, O. O., Gryschko, V. V., & Kolomiyets, S. A. (2020). Features of Investment Regulation of Construction in Agriculture. Lecture Notes in Civil Engineering, 73, 741–755.
2. Harnaha, O. M., Savina, N. B. (2023). Economic regulators of balanced land use. Visnyk NUVHP : Seriia "Ekonomichni nauky". Rivne : NUVHP. 2(102), 200-208. [Іn Ukrainian].
3. Zhmurko, I. (2017). Risks in the agricultural sector and the need for their insurance. Ekonomichnyi dyskurs: Mizhnarodnyi naukovyi zhurnal, 1, 42–49. [Іn Ukrainian].
4. Komarek, A. M., De Pinto, A., & Smith, V. H. (2020). A review of types of risks in agriculture: what we know and what we need to know. Agric. Syst, 178, 102738
5. Kushnir, S. O., Vernydub, M. Yu. (2018). Risk assessment of innovation investment credit in Ukraine. Investytsii: praktyka ta dosvid. Ekonomichni nauky, 2, 10–13. [Іn Ukrainian].
6. Kalinichenko, Z. D. (2021). Risk management: a study guide for applicants of special. 051 "Economics" and 073 "Management". Dnipro: DDUVS. [Іn Ukrainian].
7. Harnaha, O. M. (2021). Institutional and innovative modernization of the economy agricultural sector. Review of transport economics and management. Dnipro: Dniprovskyi natsionalnyi universytet zaliznychnoho transportu imeni akademika Vsevoloda Lazariana, 6(22), 5-9.
8. Hrytsiuk, P. M., Dzhoshi, O. I., Hladka O. M. (2021). Fundamentals of systems theory and management: a study guide. Rivne: NUVHP. [Іn Ukrainian].
9. Harnaha, O., Lesniak, O., Vysheslavskyi, H. (2023). Design thinking in the visualization of economic development projects in the agrarian sphere: science and art. AD ALTA: Journal of interdisciplinary research, 13(2), 126-131.
10. Sosnovska, O. O. (2019). Risk management as a tool for ensuring stable functioning of the enterprise in conditions of uncertainty. European Economic Journal, 1(3), 70-79. [Іn Ukrainian].