Exploring the Effectiveness of IT-Based Auditing Tools in Financial Risk Management
Posted: Jan 24, 2023
Abstract
The rapid evolution of financial markets and the increasing complexity of financial instruments have created unprecedented challenges for risk management professionals. Traditional auditing methods, while historically effective, now face limitations in addressing the dynamic nature of contemporary financial risks. The integration of information technology into auditing practices represents a paradigm shift that promises to enhance both the efficiency and effectiveness of financial risk management. This research examines the transformative potential of IT-based auditing tools through a comprehensive analysis of their implementation across various organizational contexts. Financial risk management has evolved from a reactive compliance function to a proactive strategic imperative. The digital transformation of financial services has introduced both new risks and new opportunities for risk mitigation. IT-based auditing tools leverage advanced technologies including artificial intelligence, machine learning, and data analytics to identify patterns and anomalies that traditional methods might overlook. This study addresses a critical research gap by systematically evaluating how these technological innovations impact risk detection capabilities, operational efficiency, and decision-making processes within financial institutions.
Downloads: 98
Abstract Views: 685
Rank: 475692