ECONOMICS - Innovative and Economics Research Journal | 2026
Authors: Sang T.M.; Anh N.Q.
DOI: 10.2478/eoik-2026-0012
Journal: ECONOMICS - Innovative and Economics Research Journal
Year: 2026
Publisher: Sciendo
Document Type: Article
Open Access: All Open Access; Gold Open Access; Green Open Access
Cited by: 1
We thus conduct this study to investigate the contribution of both internal control systems and technological capabilities on bank-wide risk management and its effect on institutional transparency, and towards SDG 16 (Sustainable Development Goal). Based on data from 448 senior managers of 26 commercial banks in Vietnam, this study utilizes Partial Least Squares Structural Equation Modelling to analyse the relationships among various internal control elements, technological integration, risk management, and institutional outcomes. We found that all five elements of the internal control mechanism help enhance risk management. For monitoring, it has the strongest effect, followed in the order of information and communication, control activities, control environment, and risk assessment. The big data capability has little effect on the application of artificial intelligence, but the application of artificial intelligence does have a real impact on risk management. The research also suggests that risk management contributes to the SDG directly and to institutional transparency. Institutional transparency, in addition, contributes positively to SDG as well as being a partial mediator between risk management and SDG. These results indicate that enhancements in internal control mechanisms and adoption of technology enhance risk governance, resulting in more institutional transparency and advancement towards SDG. The study adds to the literature by explaining how risk management and transparency link and contribute towards sustainable development in banking. It also has implications for the policymakers and banking executives who wish to enhance institutional integrity and resilience in emerging economies. © 2026 Sciendo. All rights reserved.
Artificial intelligence; Audit; Big data analytics; COSO framework; Internal control systems; Risk management; SDG16; Vietnamese banking sector