Integration of Corporate Governance, Financial Risk, and Digital Transformation on Bank Performance

Abstract

This study aims to analyze the relationship between Good Corporate Governance, financial risk, and digital transformation on banking performance. The approach used is Systematic Literature Review with a narrative method based on the literature review of the last five years. The results of the analysis show that Good Corporate Governance has a positive influence on bank performance through increased transparency, accountability, and supervisory effectiveness. Financial risks are found to have a negative impact on profitability if not managed properly. Digital transformation plays a role as a mediating variable that strengthens the influence of Good Corporate Governance on performance and reduces financial risk through automation and data-based information systems. The integration of these three variables forms a modern banking governance model that is adaptive to technological disruption and market changes. This study confirms the importance of synergy between governance, risk management, and digitalization to improve the competitiveness and stability of financial institutions in the digital age