The connotation of digitalization for a company‘s risk management

Abstract

Digitization is apparent. Due to this, business processes are transforming. Particularly for risk management, the digital revolution introduces amendment. Fresh chances are provided, while on the other hand, uncharted threats arise. Hence, risk management needs to actively adapt and change. The purpose of this paper is to understand if digitalization affects risk management. Subsequently, the focus is emphasized in innovations. In contrast to one another and concerning to one another, risk management facilitation and challenges are discussed. Twenty articles in financial journals provide the foundation of this paper and show that many companies are consulting firms such as the Big Four KPMG or Deloitte on the potential impact of technological advances. There are preparations and accompaniments for the implementation of new technologies. According to this, the premise is that the trend toward digitalization streamlines and expedites risk identification and subsequent risk assessment. Along with a case study on the current situation involving the company “Vienna Energy,” which is heavily covered in the media, a scientific literature search was conducted. The organization has been accused of poor risk management. The findings demonstrate that there is already adequate knowledge available, and many businesses are already aware of the advantages of new technologies. Digitalization has a huge impact on business processes and will result in risk management rationalization and change. Thus, this research can add new dimensions to the risk assessment process and, particularly, express the benefits and opportunities of non-analog methods.