Risk Evaluation and Management of Innovative Plant Growing Business in Lithuania

It is well established that in business risk is unavoidable due to the fact that business environment is ever changing. Because of the countless environmental factors, the influence of which is not only expressed by consecutive cause- consequence chain, it is hard to predict business results. Business environment can change very rapidly. Meanwhile it is very hard to take rapid investment, financial, industrial decisions or it costs relatively much, especially then it is based on innovation implementation in agriculture. Business decisions in agriculture are made under even more complicated conditions due to specific domain restrictions – the process of production is relatively long, natural factors, which are little influenced, a re a p art o f i t. S uppression o f t he l atter, minimization of their influence is a hard to solve task and remains of the utmost importance in Lithuanian agriculture. The risk in agriculture is mainly related to several spheres. First, plantgrowing farmers face considerable natural uncertainty and risk (Hao Aimin, 2010). This uncertainty and risk are due to the uncontrollable elements, such as weather, plague of insects, and they could be considered as key factors in this kind of activity. Second, there is another kind of uncertainty and risk in agriculture defined as dependable on market conditions. Third is family risk or in other words risk related with labour force. Fourth, agriculture policy uncertainty and risk plays an important role in plant-growing business in Lithuania. Of course, the policy issues are tightly related to ongoing in European Union (EU) levelVytauto Didžiojo universitetasŽemės ūkio akademij