ABSTRACT:

This article analyzes the theoretical and methodological foundations of the diversification principle, which is a crucial factor in ensuring economic stability and risk management. It explores the economic essence of the diversification process, its role in enhancing the competitiveness of enterprises, and effective methods for its implementation. Furthermore, the paper provides scientific proposals for selecting diversification strategies and evaluating their effectiveness.

Keywords: Diversification, economic stability, risk management, horizontal diversification, vertical integration, synergy effect, portfolio theory, competitiveness, financial stability.