DIGITAL TRANSFORMATION AND CORPORATE GOVERNANCE: BALANCING FINANCIAL PERFORMANCE WITH RISK MITIGATION

Abstract

Digital transformation has reshaped corporate governance by integrating advanced technologies, data-driven decision-making, and automation into business operations. While digitalization enhances financial performance through improved efficiency, innovation, and competitive advantage, it also introduces new risks, including cybersecurity threats, regulatory challenges, and ethical concerns. Effective corporate governance frameworks must balance the pursuit of financial gains with robust risk mitigation strategies to ensure sustainable growth and stakeholder trust. This paper explores the intersection of digital transformation and corporate governance, highlighting best practices for organizations to navigate financial performance and risk management in an evolving digital landscape.