Research On Financial Risk Management In The Process Of Digital Transformation Of Commercial Banks

With the development of technology,the integration of the financial industry and Internet technology has become increasingly close.As a pivotal financial institution in economic development,China’s commercial banks are resolutely at the forefront of change and transformation.Over the years,along with the advancement of technology,changes in the business environment and the upgrading of customer demands,the banking industry has continuously pushed for the expansion of digital boundaries.Digital transformation has brought positive impacts to the development of banks,improving the quality and efficiency of banking services and bringing benefits to banks.But at the same time,fintech also brings financial risks and new types of risks to banks,making them not only innovate in their business models but also pay attention to the risks associated with them.How banks can ride on the fast train of digital transformation,improve risk management,reduce financial risks,improve profitability and achieve a bend in the road is a question that deserves deeper consideration.In this paper,Bank Z is selected as a case bank to do research on its financial risk management in the process of digital transformation.The main contents of the paper include: firstly,based on the traditional financial risk management theory,the development of digital transformation of domestic and foreign commercial banks is introduced;secondly,for the case bank,representative financial indicators,such as capital adequacy ratio,non-performing loan ratio,return on assets,return on capital,etc.,are selected to represent the financial risk phenotype of Bank Z;the growth rate of electronic payment in China,the number of administrative penalties of banks,the educational structure of bank employees to represent digital indicators,focusing on the bank’s financial risk and management status in the process of digital transformation in terms of market risk,capital adequacy,credit risk,profitability risk,liquidity risk,operational risk,etc.;found that while facing market risk,Z Bank has its own profitability capacity is insufficient and operational risk is too high;in financial risk management In terms of financial risk management,there are four major problems: insufficient customer refinement management,data management mechanism to be improved,lack of professional talents,and inadequate internal control management.Finally,in response to the problems identified,combined with digital transformation technology,relevant suggestions are given to Bank Z from four perspectives: profitability perspective,credit risk management perspective,operational risk management,and internal control,so that it can cope with traditional financial risks and also prevent and resolve new financial risks arising from the digital ecology in a more reasonable and efficient manner.In terms of improving profitability,it is suggested that Z-banks tap customer value,control costs,expand business models,strengthen cooperation with third-party enterprises,and build an industry-financial ecology;in terms of credit risk management,it is proposed to establish a credit collection platform with digital technology,and do a good job of intelligent risk monitoring and management in the whole cycle before,during and after lending to reduce credit risk;in terms of operational risk,improve the comprehensive quality of bank employees,establish a data In terms of internal control,we will improve digital risk control,improve internal control and compliance from culture to system,and enhance internal collaboration capabilities.