УДК: 336.754:339.172

DOI: https://doi.org/10.36887/2415-8453-2019-4-11

Oleh TIAHNYRIADNO
Postgraduate student of Department of management named after prof. Zavadskyi Y.S.,
National University of Life and Environmental Sciences of Ukraine
Risk management of domestic commodity producers using stock market instruments

JEL classification: F65; G11; G15

Abstract

Introduction. One of the peculiarities of Ukrainian agrarian market functioning is the growth of uncertainties, whose impact has increased significantly as a result of globalization processes. The constant change of external and internal factors causes risks, which become the main problem of management, as they determine the directions and production efficiency and agricultural products sale. Therefore, there is a need to apply progressive risk management methods and tools that are effective and efficient under current conditions. Companies use derivatives (trusted derivatives) to turn their cases around and limit uncertainty about future businesses for revitalization. Therefore, derivatives are actually invested in some economies and make their effectiveness for a higher level of valuable assets in the course of exchange trading.

The purpose of the article is to substantiate scientifically theoretical positions and methodological approaches, to develop alternative risk management strategies through stock exchange instruments, namely types of derivatives – options.

Results. The importance of theoretical bases formation of the risk essence is substantiated that can be faced by domestic producers. The ways of uncertainties occurrence, stages of their transformation are explained. The theoretical approach to risk management through the use of futures contracts is systematized. The historical stages of using derivatives development have been evaluated. The new approach to risk management is proposed through the use of the optional Collar strategy.

Conclusions. Any business activity is unthinkable without risks in developed countries, so any manufacturer seeks to insure its risk, including through a fixed market. The terminal market allows for redistribution of risks among market participants, on which a particular derivative operates. The advantage of derivatives is the leverage that allows participants to operate large amounts of risk management funds, including hedging their own products.

Keywords: risk, risk management, risk management, hedges, options, futures, derivatives, derivatives.

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The article was received 29.08.2019