THE IMPACT OF DIGITALIZATION ON THE FINANCIAL INSTITUTIONS’ ECONOMIC SECURITY IN THE FACE OF GROWING CYBER THREATS

The primary objective of this study is to identify the various cyber threats that impact the operations of financial institutions, particularly their information and economic security. This is crucial for the sustainable growth of the country and has a direct effect on its economic security. The financial sector globally experiences the highest losses due to cyber incidents. On average, financial organizations around the world incur losses of approximately USD 5.9 million per incident, which is higher than the average loss across all industries, estimated at USD 4.45 million. Financial institutions incur losses not only from ransom payments to prevent the disclosure of stolen data and the costs associated with restoring infrastructure after ransomware attacks, but also from direct financial losses in certain situations.
This study identified the most common types of cyberattacks, examined their impact on the operations of financial institutions, and suggested ways to respond to and prevent such incidents. For the first time, an algorithm for the strategic management of digitalization in financial institutions was proposed, aimed at enhancing their economic and informational security. The algorithm can be implemented at all managerial levels to reduce the influence of subjective risk factors. Additionally, a multifactor predictive model has been developed and substantiated, which represents a further development of existing approaches to assessing information and economic security in financial institutions. This model integrates internal (organization-controlled) and external (environmental) factors and utilizes statistical methods and machine learning techniques to analyze data and forecast security levels. As digitalization continues to evolve in our country, financial institutions must adapt and embrace innovation to ensure sustainable development, even under martial law.