The effect of the diversity of the production portfolio on avoiding financial risks

Abstract

Abstract

        Companies with their various activities that they provide to the community and meet their needs and desires in light of the rapid development and at all levels are considered the lifeblood of economic activity. Or giving up a large share of the market to competing companies, and accordingly, the diversification of the productive portfolio was used as a measure to avoid financial risks and know its impact. It was formulated and after analyzing the results and following up the company’s work during five years from the date of 2017 to 2021, the research reached the proof of the first hypothesis in its first section, which indicates the existence of a strong and positive relationship between the diversification of the productive portfolio and the avoidance of financial risks. The research also concluded with a set of conclusions and recommendations.

Keywords: diversification, portfolio, productivity, avoidance, financial risks.