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

Abstract

Digital transformation is reshaping corporate finance by integrating advanced technologies such as artificial intelligence (AI), big data analytics, and blockchain to enhance financial performance while managing risks effectively. Organizations leverage digital tools to optimize financial decision-making, improve operational efficiency, and enhance regulatory compliance. However, digital adoption introduces new challenges, including cybersecurity risks, data privacy concerns, and increased reliance on automated systems. This study explores the dual impact of digital transformation on corporate finance, highlighting strategies to achieve a balance between financial growth and risk mitigation. By examining case studies and emerging trends, the paper provides insights into best practices for companies seeking to navigate the complexities of financial digitization while ensuring long-term stability.