FROM DIGITAL TRANSFORMATION TO SUSTAINABLE PERFORMANCE: THE ROLE OF GOVERNANCE, RISK MANAGEMENT, AND COMPLIANCE IN FINANCIAL INSTITUTIONS

Larasati Puspa Martani Sugianto; Vecco Suryahadi Saputro; Adisti Gilang Cempaka; Saskia Salmana Dahyar

doi:10.59003/nhj.v6i2.2187

Authors

Larasati Puspa Martani Sugianto Universitas Padjadjaran
Vecco Suryahadi Saputro Universitas Padjadjaran
Adisti Gilang Cempaka Universitas Padjadjaran
Saskia Salmana Dahyar Universitas Padjadjaran

DOI:

https://doi.org/10.59003/nhj.v6i2.2187

Keywords:

Digital Transformation, Governance, Risk Management, Compliance, Financial Institutions

Abstract

Widespread adoption of digital technology within financial institutions provides them with new opportunities that may help in achieving sustainability. Unfortunately, these opportunities also come with increasing challenges related to operational disruptions, new emerging risks, and complexities of regulations. As digital technologies become more embedded in business processes, understanding the role of governance, risk management, and compliance (GRC) becomes more crucial. This study examines how these mechanisms support financial institutions in balancing innovation and sustainability during digital transformation by employing a thematic literature review guided by the PRISMA 2020 framework. The review process began with 338 records from Scopus database and after a series of screening and eligibility stages, 16 articles were extracted for final analysis. The findings show that digital transformation is generally associated with improved organizational performance, innovation capability, and resilience. However, the literature also highlights emerging risks arising from greater technological dependence and increasing cybersecurity concerns. Across the reviewed studies, governance consistently appears as an important factor in shaping how organizations manage these opportunities and risks. The analysis further suggests that governance, risk management, and compliance work most effectively when viewed as complementary capabilities rather than separate functions. Based on these findings, this study proposes a digital GRC perspective that illustrates how integrated GRC practices can support resilience and sustainable performance in financial institutions undergoing digital transformation.

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