Lomonosova L. Development of the Cyber Risk Insurance in the Digital Economy

The dissertation is devoted to the study of the main aspects of cyber risk insurance, namely the deepening of theoretical and methodological provisions and the development of practical recommendations for the introduction and development of cyber risk insurance in the conditions of the digital economy. The dissertation examines the economic implications of cyber risks in the digital economy by comparing the development of the «digital economy» concept and the changing nature of risks due to digitalization. It presents a spiral model that shows the evolution of the «cyber risk» definition and emphasizes the connection between the integration of digital technologies into economic activities and the threats they pose. The study offers an enhanced definition of «cyber risk» as a constant factor in the digitalization of the economy, considering the sources of threats and their consequences. It also provides a classification of cyber risks based on various factors, such as localization, visibility, consequences, manifestation, size, and likelihood of occurrence, and includes additional features like the economic level, insurability, and sector of implementation. This expanded classification specifically highlights the cyber risks in the defense sector that have emerged due to the hybrid war in Ukraine. The concept of «cyber risk insurance» have been elucidated through a comparative analysis of the definitions of «cyber insurance» and «cyber risk insurance» to highlight their identity. The determinants of cyber risk insurance operation have been identified, underscoring the impact of digitalization on economic entities. This analysis covered the purpose, objects, entities, features, principles, and both the positive and negative aspects of introducing this type of insurance, thereby expanding, and refining the definition of «cyber risk insurance». The adoption of a multi-level security structure for economic entities underscores the positive role of cyber risk insurance as a risk management tool, enhancing the financial security of policyholders as cyber risks can lead to direct or indirect losses, ultimately diminishing economic benefits.