Risk management in the context of companies diversification in the karabakh economic region

Abstract

Abstract: The particular relevance of the research is reflected in the study of applying diversification strategies for companies to reduce their dependence on a single sector and build sustainable business models, against the backdrop of the accelerating economic reconstruction process in the Karabakh economic region. In this regard, the main objective of the research was to identify and assess the risks created by diversification efforts. The significance of the research lies in helping companies operating in the liberated territories to adapt to new market conditions and protect themselves from financial losses by identifying the specific risks they face. In the study, the PEST analysis method was used to understand the impact of various economic and social factors, as well as technological changes; additionally, the financial indicators of large companies for the years 2019-2024 were statistically analyzed. The scientific novelty of the work is the comprehensive approach to the liquidity, credit, and ecological risks created by diversification efforts in the unique environment of the Karabakh economic region, and the proposal of a systematic approach for their management. As a result of the research, it was determined that for successful diversification in the liberated territories, in-depth market analysis, along with continuous risk monitoring and the effective allocation of resources, are key conditions for strategic growth.