INNOVATIVE APPROACHES TO FINANCIAL RISK MANAGEMENT IN THE ERA OF DIGITAL GLOBALIZATION

Abstract

The article provides a comprehensive scientific analysis of innovative approaches to financial risk management in the context of digital globalization, which is characterized by high dynamism of financial flows, increased integration of world markets, digitalization of financial services, and increasing uncertainty in the economic environment. It is substantiated that the digital transformation of the financial system significantly changes the nature and structure of financial risks, supplementing traditional market, credit, and currency risks with new forms, including cyber risks, digital platform risks, algorithmic and systemic risks associated with the use of financial technologies and automated decision-making models. The study analyzes the role of financial innovations, including financial technologies, digital payment instruments, derivative financial instruments, and index products, as key elements of the modern risk management system. It is proven that the use of derivatives and hedging instruments in the globalized financial space helps to reduce the impact of price, interest and currency fluctuations, while requiring an appropriate level of institutional support and regulatory control. Special attention is paid to the importance of the institutional infrastructure of the financial market as a basis for increasing financial stability and effective risk management in the context of growing digital interdependence of economies. The paper focuses on the specifics of financial risk management in martial law, which is accompanied by increased macroeconomic imbalances, increased credit and liquidity risks, reduced solvency of business entities and an increased role of state instruments to support financial stability. The need to adapt financial diagnostics and risk management systems to crisis conditions using digital analytical tools and scenario forecasting is substantiated. As a result of the study, practical recommendations were formulated for improving the financial risk management system based on the integration of digital technologies, the development of the financial instruments market and strengthening the institutional capacity of the financial system. The conclusions obtained can be used in the activities of financial institutions, real sector enterprises and government bodies in order to increase financial stability and reduce the level of systemic risks in the context of digital globalization.