Major Risks and Consequences of Corporate Sector Digitalization

Authors

1 Center for Analysis, Risk Management and Internal Control in Digital Space, Financial University under the Government of the Russian Federation, Moscow, Russia

2 Department of State and Municipal Administration, Financial University under the Government of the Russian Federation, Moscow, Russia

3 International Institute of Energy Policy and Diplomacy, MGIMO University, Moscow, Russia

4 Department of Industrial Economics and Management, Azerbaijan Technical University, Baku, Azerbaijan Republic

Abstract

Nowadays, digitalization and its risks are in the focus of the researchers’ and the corporate sector’s attention, as they represent a new economic and technological frontier. It is extremely important for the corporate sector to formulate approaches to identifying the digitalization risks and financing sources to reduce them. The other important issue is the question on whether the modern society can survive the shocks of the digital era, and stay free – the authors forecast where will the process of total digitalization (in corporate sector first of all) lead the modern society. This research is dedicated to this spectrum of tasks. The main article’s focus is to identify the digitalization’s generalized risks and to formulate the enterprise’s primary steps, which are effective in the transition to a digital business model. At the same time, the other important result is the estimation of the social and public effect of digitalization and formulation of the ways of declining the emerging risks. Within the research, the main results are the proof that the digitalization risks and benefits are the different degrees of the same results; the identification and systematization of the digitalization basic risks for the corporate sector and the development of universal basic steps to start the enterprise’s business model transforming in the context of digitalization.
 

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