Improving banking digital transformation risk management
Students Name: Hanusyn Veronika Olehivna
Qualification Level: magister
Speciality: Business Economics
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: англійська
Abstract: Hanusyn V.O., Kryvtsun I.M. (supervisor). Improving banking digital transformation risk management. Master’s qualification work. – Lviv Polytechnic National University, Lviv, 2022. Extended abstract. Today, it is impossible to imagine the functioning of the economy without the active use of digital technologies at all levels. Therefore, the strategy of successful activity and development of modern enterprises is closely related to the use of high-tech means to obtain maximum profit. This is possible only with active digital transformation of business in general, as well as the banking sector. Digital transformation involves changing business strategies, principles, models, operations, management approach, goals [1]. Digital transformation becomes the main factor of changes in the business process, which contributes to the development and emergence of new risks, due to a certain uncertainty of individual changes. Therefore, it is very important to learn to understand the essence of risk and to find possible measures for its management, because digital risks can greatly harm the activity of a banking institution [2]. The object of the study is the risk management process of the digital transformation of the banking business. The subject of the research is theoretical principles, regulatory and instructional acts, economic indicators for risk management of banking institutions. The purpose of the study is to develop measures to improve the risk management of the digital transformation of the banking business. Results of the research. Virtual banks differ from traditional banks in many ways, from working methods to customer experience, but their risks are very similar. However, after digitalization, classic banking risks are enhanced by the impact of digitalization risks. Due to the introduction of virtual banks, cyber security and technology risk specialists are faced with the variability of threats, which require them to be adaptive in assessing and managing the risks associated with them [3]. The high level of cyber security risk and technology risk require deep knowledge of impact tools, increased awareness and intelligent integration of processes. Digitalization forces banks to review their business models and deal with new operational risks. An important condition for an organization to be successful and survive in the digital era is perfect risk management. Risk management allows you to set the goals of your activity and will help avoid any disruptions in business, ensure stable income. The risks of banking digital transformation are closely related to each other, accordingly, when one occurs, there is a high probability that the other risk may also occur for banking activities. Therefore, the best option for the banking structure is to create a comprehensive approach to risk management and assessment, which will be able to identify the risk and the magnitude of its impact, as well as show the probability of the occurrence of other risks [4]. Keywords: risk, classic banking risks, digital transformation risks, digitalization, banking risk management. References: 1. Кмитюк Т.Л. Концептуальні аспекти моделювання та управління ризиком цифрової трансформації: зб.наук.праць. – Київ – 2015 – С.163 -169. 2. Риженко О., Фіщук В. Як цифрова економіка змінить Україну. Економічна правда, 2018. URL: https://www.epravda.com.ua/columns/ 3. 5 Biggest Threats to cyber security in the banking industry in 2022. URL: https://www.alert-software.com/blog/cybersecurity-in-banking 4. Risk management system in Banks. URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/9492.pdf