E ISSN: 2583-049X
logo

International Journal of Advanced Multidisciplinary Research and Studies

Volume 4, Issue 1, 2024

Internal Control and Performance of Commercial Banks in the Context of Digital Transformation



Author(s): Nguyen Thu Hong

Abstract:

In the current market mechanism, commercial banks face major barriers in terms of competition with domestic and foreign banks. Improving competitiveness and effectively using resources is the goal of any commercial bank. The requirements and limitations in banking operations can only be met and overcome thanks to a scientific and effective internal control system. Since then, strengthening internal control to improve operational efficiency has become an urgent need in management at every commercial bank.

Digital transformation has been changing the methods and ways of implementing control activities in general and internal control in particular. Control 4.0 will rely on technology driven by the development of the 4.0 industrial revolution to collect financial and non-financial information and analyze and model it to ensure a meaningful way. Effective. The application of technology has helped improve the ability to automate control activities, expand control scope, shorten implementation time, and ultimately improve control quality; at the same time, it changes standards, principles, technology, and awareness of controllers. In particular, digital transformation is also a factor that changes the environment, the context in which risks arise, and the types of risks as well as influencing the behavior of adjusting resources to perform audits for these risks.

This article aims to provide recommendations to strengthen the internal control system and minimize risks in commercial bank operations, making an important contribution to improving the operational efficiency of banks. Commerce in the context of digital transformation.


Keywords: Commercial Banks, Digital Transformation, Internal Control

Pages: 313-318

Download Full Article: Click Here