Risk management in corporates; can digitalization help improve risk management in cash management?

Abstract

The purpose of this study was to investigate if digital solutions help reducing risks related to cash management. The main theories included cash management, risk management and digitalization in finance. The study was conducted as case study. The results show that the companies have different solutions in cash management and all help in reducing operational and financial risk. The most important is to have a risk management plan that is actively conducted. The importance of monitoring the end users in financial actions was highlighted. The automation of digital solutions was also risk reducing factor. Many of the companies were already adapting Fintech 3 (Zheng et al. 2018, p. 1) that included smart finance that combines internet fi-nance, Big Data to achieve accurate calculation and includes blockchain, cloud or other emerging technologies. Still it would be interesting to see if the compa-nies are adopting more solutions like AI for reducing financial risks.