Managing digital transformation risks in Azerbaijan’s banking industry: Best practices and case studies

Abstract

The advancement in technology has seen almost every bank in Azerbaijan and the world embrace digital transformation to improve their operations and enhance customer experience. However, the digital transformation in banks has come with a number of risks. Some of these risks include operational disruptions, cyber security threats, and lack of regulatory compliance, among others. To mitigate or prevent these risks, banks must embrace some proven best practices. These best practices include leveraging other technologies like pilot programs, ensuring compliance with regulations and laws, conducting a comprehensive risk assessment, and investing in proper cyber security measures. Besides utilizing best practices in managing digital transformation in banks, banks must learn from other banks that have successfully managed their digital transformation. In Azerbaijan, an example of these banks is the Rabita bank. Having experienced some challenges in digital transformation, these banks have embraced best practices to address these challenges.