Digital Risk Management Research Articles

Digital Risk Management: A Study of How Firms Mitigate Digital Risks and Threats

The banking industry has seen a sharp rise in the use of AI services over the last ten years, which has improved client satisfaction and efficiency. The machine learning (ML), one of artificial intelligence's primary building blocks, has caused a paradigm change in the banking services sector. Every new technology that is introduced carries with it new threats. Finding such hazards is only the first step; you also need to analyse, evaluate, treat, regulate, and keep an eye on them. Risk is characterised by three elements: the possibility of loss, the unpredictability of the result, and the necessity of making a decision. According to this concept, a risk management strategy should be divided into three stages to address risks: planning ahead, carrying out risk management tasks, and maintaining and enhancing risk management. The first two stages could appear self-evident. But it's critical to recognise that risk management is a continuous process that requires constant attention. Continuous risk management is intended to avert issues, enhance product quality, make better use of available resources, and foster teamwork.

Advancing chemical safety protocols in small and medium enterprises: A comprehensive guide

Small and Medium Enterprises (SMEs) face significant challenges in managing chemical safety, often due to limited resources, inadequate infrastructure, and a lack of awareness about regulatory requirements. As chemical safety becomes increasingly critical for protecting workers, communities, and the environment, it is essential to develop tailored safety protocols for SMEs that address their unique needs. This review presents a comprehensive guide on advancing chemical safety protocols in SMEs, focusing on risk assessment, proper storage and handling of chemicals, personal protective equipment (PPE), spill prevention, and waste management. The integration of modern technologies, such as digital risk management tools, Internet of Things (IoT) sensors, and AI-driven predictive analytics, offers SMEs cost-effective solutions to enhance chemical safety. These technologies enable real-time monitoring, early warning systems for chemical hazards, and the automation of safety audits, which can significantly reduce risks and improve compliance. Additionally, fostering a strong chemical safety culture within SMEs is vital, requiring leadership commitment, employee training, and effective hazard reporting systems. Navigating regulatory frameworks and achieving compliance with limited resources presents another key challenge for SMEs. This guide highlights practical strategies for meeting safety standards, including leveraging external resources and simplifying documentation processes. Case studies showcase successful implementations of safety protocols and technologies in various SME sectors, providing insights into best practices and lessons learned. As technological advancements continue to evolve, SMEs must stay ahead by adopting innovations such as robotics, wearable safety technologies, and digital twins for chemical safety planning. This review emphasizes that a holistic approach—combining technology, policy, and workplace culture is essential for advancing chemical safety in SMEs, ensuring long-term sustainability, and safeguarding the health and well-being of workers.

DIGITALIZATION AS A MEANS OF OVERCOMING CHALLENGES AND THREATS OF CONSTRUCTION PARTICIPANTS IN A MULTIPROJECT ENVIRONMENT

This article examines the potential of digitalization as a strategic solution to address the challenges and threats faced by construction actors in a multi-project environment.Construction activities are inherently complex, often characterized by the simultaneous management of several projects, each with its own characteristics and challenges. In a multi-project environment, participants such as designers, developers, and contractors face significant obstacles, including resource allocation conflicts, communication barriers, inefficiencies, and increased risk of delays and cost overruns. The advent of digital technology offers a transformative approach to these challenges, enabling more efficient management and coordination across multiple projects. The main objective of this paper is to explore how digital tools and technologies can mitigate the specific challenges faced by different actors during the construction of multiple projects. Analyzing key issues such as scheduling conflicts, miscommunication, data management complexity and risk management difficulties, the article highlights critical areas where digitization can have a significant impact.One of the most urgent problems in a multi-project environment is the effective allocation and planning of resources. Traditional management approaches often fail to cope with overlapping schedules and competing priorities, resulting in delays and inefficiencies. Digital tools such as Building Information Modeling (BIM) and Project Management Information Systems (PMIS) offer integrated platforms that facilitate seamless coordination and real-time updates. These systems provide centralized data stores and sophisticated scheduling algorithms that improve decision-making and reduce the likelihood of conflicts.Communication barriers are another major problem in multi-project environments that can lead to misunderstandings, errors, and delays that negatively impact project timelines and outcomes. Digital communication platforms, including instant messaging, video conferencing, and collaboration software, enhance real-time communication and ensure alignment among all stakeholders. These platforms enable the rapid exchange of critical information and facilitate the collaborative environment necessary to manage multiple projects simultaneously.Ensuring that all stakeholders have access to accurate and up-to-date information is critical to effective decision-making. Digitization solves this problem by providing advanced data management and analytics capabilities. Big data analytics and artificial intelligence can analyze large data sets to predict potential problems and optimize resource allocation. These technologies help identify trends, predict project outcomes, and facilitate informed decision-making, ultimately increasing project efficiency and effectiveness.Risk management is particularly challenging in a multi-project environment due to increased complexity and interdependence. Digital risk management tools offer a framework for identifying, assessing and mitigating risks across projects. These tools provide scenario analysis, risk tracking and automatic alerts, enabling proactive risk management and reducing the likelihood of project failure.

Leveraging Digital Transformation in Risk Management

This study analyses the evolving landscape of digital risk management within the banking sector. Based on responses from a diverse group of Italian banks, the research sheds light on key trends and strategic priorities in risk management. By soliciting insights from professionals and decision-makers across various financial institutions, this research seeks to provide a snapshot of current practices, challenges, and opportunities in the realm of digital risk management. Notable findings include a strong commitment to cloud adoption, a focus on areas like cyber risk and model explainability. The study underscores the industry's readiness for regulatory advancements. These insights provide valuable guidance for banking institutions navigating the complex terrain of digital risk management in the modern era.

Economic security of credit organizations in the context of growing digital risks

This article partially discusses the results of the author's dissertation research. The subject of study of this article is the methods of measuring and managing risks associated with digitalization in the context of improving economic and information security of the bank. The digital transformation of commercial banks involves not only updating technology, but also rethinking banking and creating a more customer-centric experience based on digitalization tools. By embracing digital transformation, banks can optimize operations, improve security and provide their customers with the services they need when and where they need them. The study of existing features of commercial banks' business processes, changing digital space and risks allowed the author to establish the relationship between economic security, information security and digital risks. The role of the digital risk management subsystem was identified and the types of digital risks of the bank were studied. The study of the possibilities of applying the existing methodologies for assessing the risks of a credit organization to the changing external environment and digital space surrounding modern banks has shown that for the most part they are applicable to risk assessment in the implementation of adaptation. The practice of risk management in banks requires identification and classification of digital risks, strategies to mitigate the identified risks adapted to the digital space. The author's methodology for assessing and minimizing the digital risks of a credit institution is proposed, which makes it possible to determine the type of digital risk on the basis of input and output variables and develop a possible managerial decision to minimize the risk. Based on the approbation, the author identifies digital risks for three Russian banks with the largest digital presence in the Russian banking sector.

A Trans-Theoretical Model for Farmers’ perceived Usefulness of Digital Risk Management Tools – A Case Study from Germany

Digital risk management tools (RMTs) are promising to help farmers manage risk. However, these recently developed tools are still unexplored and hardly used by farmers. This study is the first to investigate how German farmers perceive the usefulness of digital RMTs and which factors influence them. A novel modification of the trans-theoretical model was made to determine farmers’ perceived usefulness gradually. The regression results show that, on average, farmers perceive digital RMTs as potentially useful. Perceptions are positively influenced by a higher level of education, full-time employment on the farm, use of mobile devices and a higher perceived importance of digital tools. The study contributes to the literature by investigating the extent to which farmers are willing to accept the combination of digitisation and risk management. The results are of interest to policy makers involved in digital agriculture and to agricultural tool providers, as they offer first insights into farmers’ acceptance of digital RMTs. Researchers benefit from the successfully applied trans-theoretical model fitting.

Risks for Companies during the COVID-19 Crisis: Dataset Modelling and Management through Digitalisation

The goal is to create a systemic risk profile of companies during the COVID-19 crisis, which reflects their cause-and-effect relationships and risk management. The research objects are the following types of risks for companies listed in “Global-500” (Fortune) and the top 55 most competitive digital economies of the world (IMD) in 2017–2022: (1) risk of reduction in competitiveness (rank), (2) risk of reduction in revenue, and (3) risk of reduction in profit. The research methodology is based on the method of structural equation modelling (SEM), which allowed for exploring the cause-and-effect relationships between risk changes and digital risk management for companies during the COVID-19 crisis. As a result, based on the SEM model, it was proven that risks for companies during the COVID-19 crisis only slightly increased compared with that at the pre-crisis level. It was determined that companies faced large risks during the COVID-19 crisis in developed countries. It was discovered that, due to successful adaptation, risk management of companies assuaged the manifestations of the COVID-19 crisis in the economy. The key conclusion is that, under the conditions of a crisis of a non-economic nature (e.g., the COVID-19 crisis), companies independently and successfully manage their risks with the help of measures of digitalisation: corporate risk management with the limitation of state intervention is preferable. The contribution to the literature consists of the development of the concept of risks for companies by clarifying the specifics of risks and risk management of companies during the COVID-19 crisis. The theoretical significance lies in the fact that the authors’ conclusions rethought the risks for companies under the conditions of a crisis given the special context of a crisis of a non-economic nature (via the example of the COVID-19 crisis). The practical significance is that the developed novel approach to risk management of companies through digitalisation, which is based on the experience of the COVID-19 crisis, will be useful for risk management of companies under the conditions of future crises of non-economic nature caused by epidemics/pandemics and/or environmental disasters.

Retraction Note: Features of the use of digital Risk management tools in the capital market and the organized commodity market

The Guest Editor(s) and the authors have retracted this article. Actually, due to an unintentional oversight, the authors failed to disclose a conflict of interest that might have affected interpretations of the work and recommendations by peer reviewers. The Publisher approved to the retraction.

Концептуально-аналитические подходы к возникновению потенциальных угроз в цифровой экономике

The study’s relevance is determined by the significant impact that digitalization has on the economic and social activities of modern states, which engenders new risks and threats to the functioning of va­rious systems and institutions. Based on the evolutionary-institutional analysis and systems analysis methods, the study identifies the threats of digitalization and the associated macroeconomic risks and describes the current approaches to digital risk management. The evolution in the understanding of risk and contemporary approaches to risk assessment is traced in relation to business, social, economic, investment, military, and political threats. Among the critical risks of digitalization, an important place is occupied by cyber risks, which are part of the strategic risks of enterprises, credit risks and regulatory risks. These risks affect markets and create a systemic risk stemming from the possible damage to elements of the infrastructure and market. Technology-driven risks have a systemic character as they may affect more than one country, economic sector, as well as a wide range of natural, technological, and social systems. The study offers an analysis of digitalization risk assessment methods (STRIDE, CIA, OCTAVE) and provides an overview of the qualitative and quantitative methods used to assess digital threats. Modern approaches to cyber risk management include modeling threats and vulnerabilities. These methods may prove especially useful to identify, classify and prioritize threats and to develop selective risk reduction measures. The concepts of FinTech and Central Bank Digital Currency (CBDC) are discussed in relation to the associated risks to the stability of national and international financial systems. The study also considers the concept of e-government, the stages of the evolution of e-government characterized by different risks to systems of public administration.

Distributed Assessment of the Risk of Exceeding the Project Deadlines and Recommendations for Improving its Sustainability

The article discusses the problem of exceeding the planned deadlines for the implementation of investment projects and ensuring their sustainability at the stage of project preparation using digital risk management technologies. The risk of exceeding the project deadlines is considered as a consequence of the influence of uncertainty of the initial data, the duration of the project implementation and its individual stages, the resources used, conditions, assumptions and restrictions on the project objectives associated with its implementation within the deadlines established by the project schedule. Risk factors were identifi ed and a digital method of distributed assessment of the risk of exceeding the project deadlines was considered, including its soft ware implementation in the Microsoft Project environment. On the example of a real project for the reconstruction of a unique object — the Felix Chopin Mansion in St. Petersburg, a computational experiment was carried out and new possibilities for building a risk profile and digital visualization of managing the risk of exceeding the project deadlines are shown.

APP innovation to Control Projects Risks Management during Crises

The goal of this study is to build an application that can be used in difficult cases and sudden circumstances during the pandemic and post-disaster state, which can be the development of digital risk management and mitigating the difficult impact of the epidemic through the improvement of IT and IoT that can be fine by finding initial solutions and make the world like a digital city that could be managed by the network. We provide this study to gain an overview of reasons for delayed and exceeded costs in a select of thirty Iraqi case projects by controlling the time and cost. The drivers of delay have been investigated in multiple countries/contexts. however, there is little country data available under the conditions that have characterized Iraq over the previous 10-20 years.

Digital Risk Management: Investigating Human-Factor Security with a Behaviorist Approach

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Seeding the cloud: Consultancy services in the nascent field of cyber capacity building

Transnational issues in public administration are charged with coordination problems between public and private actors. This is especially true for nascent issue fields. The mitigation of global cyber risks represents one such emerging issue. International organizations have encouraged the development of cybersecurity strategies as an integral part of national security regimes and to strengthen the global security environment. Cyber capacity building (CCB) efforts respond to these calls and disseminate digital risk management to recipient states. At a time where public administrations have not determined a position on CCB, global professional service firms have affirmed the importance of external third-party knowledge on cybersecurity issues. They are “seeding the cloud” to benefit from the field as it matures. Through the application of the Strategic Action Field framework, I highlight how field dynamics are shaped through framing contests and reflected in the practices of policy production.

Digital transformation of geo-information support for large gas projects in Arctic

Article present digital transformation results of geo-information support for large gas projects in Arctic within Industry 4.0 era under climate change and COVID-19. In study, there are used Foresight technologies, theory of decision making under uncertainties, risk management approach, methods of databases constructing in case of digital risk management platforms. Currently, the ways of geo-information support for large arctic gas projects have distinct features of digitalization with new concepts in data obtaining and presenting. In paper, preference is given to the use of digital risk management platforms, which integrate heterogeneous hardware and software resources with the use of web-technologies in distributed networks and wide application of cloud services. There is considered examples of different digital natural risk management platforms for large arctic gas projects. The presented research results have significant scientific noveltyδ can be used in training and educational purposes and can be useful for private investors, public environmental organizations of the civil sector and state environmental control bodies.

Digitalization of icebreaker support for fuel-energy resources transportation via Arctic and Subarctic

Paper describes digitalization development results of icebreaker support for fuel-energy resources transportation via Arctic and Subarctic within Industry 4.0 era under climate change and COVID-19. In study, there are used theory of decision making under uncertainties, risk management approach, Foresight technologies, methods of databases constructing in case of digital risk management platforms. In research, preference is given to the use of geo-information digital online platforms, which integrate heterogeneous hardware and software resources with the use of web-technologies in distributed networks and wide application of cloud services. There is considered examples of chosen platforms using for icebreaker support of fuel-energy resources transportation via Arctic and Subarctic within Industry 4.0 era under climate change and COVID-19. The presented research results have significant scientific novelty and can be useful for state environmental control bodies, commercial organizations and private investors.

Cybersecurity and the risk governance triangle

In cybersecurity of smart connected products, the risk management systems of safety, security, and privacy (data protection) are increasingly merging. This is creating a “risk governance triangle” based on different pillars of regulation and standardization. In the future, the challenge will be to bring the different systems together and find an integrated approach to digital risk management.

Transversal approach to digital risk management

The article presents a brief overview of digital risks, since their management is an integral part of business management. Digital transformation opens up incredible opportunities for both organizational growth and value creation. However, none of these opportunities can be realized without taking into account the associated risks. An increasing number of organizations are becoming vulnerable to certain types of digital threats. Risk management is critical to the sustainability of an organizations, and understanding risk areas is critical to identifying and eliminating all the risks that an organization may be exposed to in a digital environment. For effective management of digital risks, the authors highlight those their areas that seem to be the most significant.The paper emphasizes three approaches to mitigating digital risks: tactical, operational and strategic. When studying the main areas of the emergence of digital risks in an organization, the authors concluded that it is necessary to develop a universal approach to creating an effective risk management mechanism in the digital environment. Within this approach, the article formulated the main stages of digital risk management.As an effective toolkit in managing digital risks of an organization, the paper proposes to use a transversal approach, that is, the organization of such connections, interaction and cooperation between individual employees and divisions of the organization, which allow you to effectively implement processes associated with risk identification, their analysis, and decision-making aimed at minimization of possible negative consequences of already occurred risk events. At the same time, effective management of digital transformations to ensure cross-functional synergy presupposes the elimination of risks arising from interdependent processes. The study also proposes to develop a digital risk management strategy based on a transversal approach in integration with the digitalization strategy already being implemented in the organization. This approach will allow the organization to feel more confident in the future when implementing and using innovative technologies to solve the problems it faces.

Digital Technologies Development for Geo-Information Support of Techno-Sphere Security in Arctic and Subarctic

Authors consider the results of digital technologies development in geo-information support for techno-sphere security area within natural-industrial systems in Arctic and Subarctic while climate change. In study, there are used Foresight technologies, theory of decision making under uncertainties, risk management approach, methods of databases constructing in case of digital risk management platforms. Now, the ways of risk management for natural-industrial systems while climate change within environmental economics have distinct features of digitalization with new concepts in data obtaining and presenting. Preference is given to the use of digital risk management platforms, which integrate heterogeneous hardware and software resources with the use of web-technologies in distributed networks and wide application of cloud services. It is proposed to use block diagram of geo-information support decision within in environmental economics while climate change. This basic model allows direct assessment of the environmental monitoring cost impact on the overall business profit. There is considered examples of different digital risk management platforms for natural-industrial systems. For preliminary data exchange and discussion, there is used platform https://www.researchgate.net/profile/Valery_Abramov2/.

Assessing and mitigating the risk of digital manufacturing: Development and implementation of a digital risk management method

Abstract While academics and practitioners mostly agree over the potentials of digital manufacturing, the insights and opinions on the associated risk management differ widely. Based on the analyses of more than 300 projects for digital manufacturing and 50 in-depth expert interviews, we develop a method for assessing risks factors and assigning situation-specific mitigation strategies for a variety of digital manufacturing applications. A classification of risk factors and application fields is the basis for the web-based assessment and mitigation tool designed for the preparation and evaluation of digitalization projects in production and logistics.

APPLICATION OF BLOCKCHAIN AND ARTIFICIAL INTELLIGENCE IN BANK RISK MANAGEMENT

The transformation from analogue to digital risk management is becoming a prerequisite in the implementation of the incresingly digital bank institutions’ strategies. Among the key steps in this direction is the optimal use of blockchain technology’s potential and artificial intelligence. Huge hopes are set on blockchain in view of two key risks facing today’s banks: the danger of using the bank system for money laundering and financing terrorism, and cyberattack threat. Artificial intelligence, in turn, creates conditions for processing large arrays of unstructured data risk, more precise identification of potential problems in the future, full automation of manual processes in risk function, credit scoring automation, developing adequate market risk assessment models, etc.