SYNERGY OF RISK MANAGEMENT AND DIGITALIZATION: INSTITUTIONAL FRAMEWORK FOR REGIONAL ECONOMIC DEVELOPMENT AFTER THE CRISIS

Abstract

The article examines the interconnection between risk management and digitalization as strategic factors of post-crisis recovery and long-term development of regional economies. It emphasizes the key role of institutional frameworks in creating a favorable environment for integrating risk-oriented approaches and advanced digital technologies into regional governance systems. The study demonstrates that the synergy between risk management and digitalization enhances economic resilience, investment attractiveness, competitiveness, and the innovative potential of regions. It highlights that digital platforms, big data analytics, artificial intelligence, and predictive modeling tools allow timely identification of emerging threats, effective risk mitigation, and informed decision-making processes. Moreover, the integration of these approaches facilitates adaptive governance, reduces operational and transactional costs, and increases transparency and accountability in both public and private sectors. The article also discusses how digital transformation contributes to structural economic changes, stimulates the emergence of new business models, supports the development of smart infrastructure, and ensures social and economic inclusivity at the regional level. Practical recommendations are proposed to strengthen institutional support for the synergy of risk management and digitalization in the economy, including the refinement of regulatory and legal frameworks, the expansion of digital infrastructure, development of specialized human capital, and promotion of international cooperation and the implementation of best practices. The study concludes that coordinated implementation of risk management strategies and digitalization initiatives forms a critical foundation for sustainable regional development, providing regions with adaptive capacity to cope with future crises, seize emerging opportunities, and achieve long-term socio-economic growth in an increasingly uncertain global environment. It has been determined that the development and implementation of a comprehensive strategy aimed at the synergy of risk management and digitalization will serve as a guarantee for enhancing the resilience, innovativeness, and competitiveness of the regional economy in the future.