The impact of digital transformation on internal control and risk management systems

Abstract

Technological development in all areas of financial and economic activity directly impacts the degree and level of security against internal and external threats as they adapt to the constantly changing economic environment. Automation is widely used in many sectors of the economy and human resources management at any enterprise, such as the implementation of electronic document management. However, digital transformation is a continuous process of innovative development of economic systems and work organization, resulting in the creation of new tools and models that ensure high enterprise efficiency. Both positive and negative results can be expected from the implementation of digital transformation unless careful monitoring is ensured at every stage of its implementation. This study focuses on analyzing the impact of digital transformation on internal control and risk management systems. Furthermore, this article emphasizes the importance and necessity of implementing digital innovations to improve risk management.