MODELING THE IMPACT OF CYBER THREATS ON INVESTMENT DECISION-MAKING

Abstract

Actuality. The global financial space of recent years is undergoing a massive digital transformation that fundamentally changes the architecture of investment services, however, it forms entirely new challenges and vulnerabilities, turning financial infrastructure into a major target for cyberattacks. Problem Statement. Traditional approaches to investment risk assessment, based on market volatility, completely ignore the risk of sudden loss or blocking of capital due to cyber incidents, which leads to erroneous managerial decisions. Solutions. The authors propose a scientific and methodical approach to the transformation of classical portfolio theories by directly integrating the relative annual loss expectancy, specific information security expenditures, and information asymmetry coefficients into the criteria for assessing risk-adjusted asset management efficiency. Results. A mathematical model of the expanded dimensionless Sharpe ratio was developed, and a simulation modeling of capital allocation between two funds with fundamentally different risk profiles was conducted, demonstrating a precise adjustment of the investment attractiveness vector toward transparent, high-margin strategies. Conclusions. The critical expediency of taking technological determinants into account when diversifying the portfolio of institutional and private investors to ensure an objective choice of financial instruments is proved.