Research on the Digital Transformation Path of Risk Management in Commercial Banks

As economic uncertainties and complexities increase, along with the application of digital technology, the risks faced by commercial banks have become more diversified, complex, and novel. Once risks materialize, they can potentially lead to crises, posing significant hidden dangers to the high-quality development of commercial banks. Despite various risk prevention measures adopted by commercial banks, the absolute amount of non-performing loans remains high each year. In recent years, driven by rapid financial technology development and macroeconomic policies, a digital wave has swept through the banking sector. Chinese banks have accelerated their digital transformation across various aspects, offering customers better and more diverse financial products and services. However, the emergence of new products and tools also brings numerous issues that need to be explored and addressed. Therefore, this paper takes commercial banks as an example to explore the main risk issues arising during digital transformation. It integrates the inherent advantages of digital technology to innovate and apply new digital technologies, continuously improving the governance system of digital transformation in risk management.