Assessing the Impact of Digital Transformation on Risk Management in Vietnam's Joint-Stock Commercial Banks

Abstract

The phenomenon of digital transformation is an increasingly significant global trend, particularly evident in contemporary society. The banking sector is at the forefront of this transformation, driven by advancements in science and digital technology. This shift offers a blend of both opportunities and challenges, especially for joint-stock commercial banks. While these institutions are benefiting from the adoption of digital technologies, they are also facing a range of risks. These include credit, liquidity, and information risks, as well as security concerns like unauthorized access to sensitive data for card or electronic bank account usage and challenges in detecting fraudulent transactions. Given this backdrop, assessing the impact of digital transformation on risk management within joint-stock commercial banks is vital. Our study involved a thorough investigation at 18 joint-stock commercial banks, including interviews with 192 participants.