Risk Management in Digital Era: Opportunities and Challenges

This study aims to evaluate the risks faced by businesses embracing digitalization while assessing the opportunities, how to manage these risks in the mentioned new period, the supporting factors and opportunities, and the potential threats and challenges. In this context, we first address the historical development of the concept of digital transformation, its main benefit objectives, then the risks and adverse effects of digitalization, which is followed by a discussion, over the existing literature, of the change in risk management in the digitalized world and the conditions, opportunities, and challenges making this change necessary. As a result, digitalization can provide significant gains in operational processes and risk management approaches. On the other hand, it has been revealed that it is necessary to act with a new risk management approach in which this opportunity for gain can be made use of, taking into account the new risks arising after digitalization. Evaluating the opportunities and challenges regarding implementing the said approach, we have assessed the risk management approaches in businesses after digitalization under the titles of how businesses’ reactions to risks change, the consequences of risks in changing businesses, and how the adverse effects of risk have changed.