Explaining the Role of Policy Factors on Institutional Building of Risk Management in Rural and Agricultural Regions of “Rostov on Don” in Russian Federation

The purpose of this research was to specify a structural model in order to estimate the impact of policymaking factors (financial policy and energy policy) on institutional components related to the risk management in agricultural and rural areas of Rostov on Don. At the first stage, we explored and ranked a risk profile in agriculture based on the Rostov situation including climate, production, socio-economic, agricultural market, labor market and land regulation. At the next stage, the main strategies were identified in order to manage related risks and increase economic resilience. The data used in this paper were collected through a structured questionnaire from 75 subject matter specialists in the field of economics and agricultural economics from Southern Federal University (Rostov on Don) and Saratov State Agrarian University along with a number of governmental experts. Two confirmatory models of policy making and institutions fitted the data or supported by the obtained sample data. Resulted from the structural model showed that two factors of “financial policy” and “energy policy” explains 48 and 38 percent of variance in “institutional technology” and “institutional building” respectively.