Countering cyber risks, corruption and the shadow economy through a European digital resilience framework

Abstract

The article examines the interrelationship between cyber risks, corruption, and the shadow economy in the context of deepening digital transformation. Based on the systematization of contemporary EU regulatory and institutional instruments, a conceptual model is proposed to provide a comprehensive response to interconnected digital and economic threats. The model comprises five functionally interconnected components: cyber resilience of critical sectors, reliable digital identification, transparency of financial flows, digitalization of tax administration, and data governance and interoperability. The mechanisms through which these components affect cyber risks, corruption, and the shadow economy are identified, demonstrating that their integrated application can simultaneously address different channels through which digital and economic threats emerge and spread, thereby generating a synergistic effect in strengthening economic security. The directions for applying the proposed approach in Ukraine in the context of national legislation alignment with the EU acquis are substantiated. The practical significance of the results lies in their potential use to improve public policy on digital governance, countering corruption and the shadow economy, and strengthening Ukraine’s economic security.