Mechanisms for Reducing Financial Risks in the Context of Digital Economic Transformation

The digital transformation of the economy entails considerable shifts in the structure and nature of financial risks to be borne by the financial system. As different verticals embrace digital technologies, cyber, system, operational and liquidity risks become increasingly relevant alongside conventional credit, and market risks. The purpose of this article is to study the mechanisms for the minimization of financial risks under conditions of the digital economic transformation. The paper systematizes the main types of financial risks and modern digital tools for their mitigation based on the analysis of international, CIS, and national scientific literature. The study is based on logical-structural analysis, comparative and systemic approaches. We create a financial risk matrix to find top-priority areas of risk management. The findings show that Technology Integration, Regulatory tool and Cybersecurity tracks increases financial stability and effectiveness of financial risk management.