BANK CASH FLOW MANAGEMENT PRINCIPLES: INTEGRATION OF RISK MANAGEMENT AND DIGITAL TECHNOLOGIES

Abstract

This article aims to highlight the critical importance of integrating risk management principles with digital technologies for the effective management of banks' cash flows in the evolving landscape of the digital economy. The study underscores the continued relevance of robust cash flow management as a fundamental requirement for maintaining financial stability and ensuring the solvency of banking institutions. It highlights the need for proactive risk management practices to mitigate potential financial losses and maintain customer confidence. The methodology employed in this paper involves a comprehensive analysis of the existing literature on banks' cash flow management and risk management practices. It also includes a critical assessment of the impact of digital technologies on these areas. The study identifies the limitations of traditional risk management approaches in dealing with the complexities introduced by the digital economy. By synthesising current knowledge and identifying gaps, the study lays the groundwork for future research into more tailored solutions. The results of this analysis reveal a significant gap between the acknowledged importance of cash flow management in mitigating risk and the limited academic attention devoted to its specific application in the context of the digital economy. The study highlights that while technological advances offer significant potential for improving cash flow risk management, current research focuses predominantly on conventional methodologies that often fail to address the unique challenges and opportunities presented by digitalisation. This research underscores the urgent need for the development of novel risk management methodologies and tools that are specifically adapted to the intricacies of the digital financial environment, including the exponential growth of data, the acceleration of transaction speeds, the emergence of cyber threats, and the proliferation of new financial technologies. The findings presented here can inform future research efforts aimed at developing more effective and relevant risk management strategies for banks operating in the digital age.