Study on the Identification of Financial Risk Path Under the Digital Transformation of Enterprise Based on DEMATEL-ISM-MICMAC

ArXiv ID: 2305.04216 “View on arXiv”

Authors: Unknown

Abstract

Digital transformation challenges financial management while reducing costs and increasing efficiency for enterprises in various countries. Identifying the transmission paths of enterprise financial risks in the context of digital transformation is an urgent problem to be solved. This paper constructs a system of influencing factors of corporate financial risks in the new era through literature research. It proposes a path identification method of financial risks in the context of the digital transformation of enterprises based on DEMATEL-ISM-MICMAC. This paper explores the intrinsic association among the influencing factors of corporate financial risks, identifies the key influencing factors, sorts out the hierarchical structure of the influencing factor system, and analyses the dependency and driving relationships among the factors in this system. The results show that: (1) The political and economic environment being not optimistic will limit the enterprise’s operating ability, thus directly leading to the change of the enterprise’s asset and liability structure and working capital stock. (2) The enterprise’s unreasonable talent training and incentive mechanism will limit the enterprise’s technological innovation ability and cause a shortage of digitally literate financial talents, which eventually leads to the vulnerability of the enterprise’s financial management. This study provides a theoretical reference for enterprises to develop risk management strategies and ideas for future academic research in digital finance.

Keywords: Digital Transformation, Financial Risk Management, DEMATEL-ISM-MICMAC, Path Identification, Corporate Finance, Corporate Finance

Complexity vs Empirical Score

• Math Complexity: 2.5/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper primarily uses established decision-making frameworks (DEMATEL, ISM, MICMAC) with moderate mathematical formulation, but relies on qualitative literature review and conceptual modeling without real-world data, backtesting, or implementation details.

  flowchart TD
    A["Research Goal: Identify Financial Risk Paths under Digital Transformation"] --> B["Data Collection & Methodology Selection"]
    B --> C["DEMATEL Analysis<br>Identify Cause-Effect Relationships"]
    C --> D["ISM Analysis<br>Construct Hierarchical Structure"]
    D --> E["MICMAC Analysis<br>Analyze Dependency & Driving Power"]
    E --> F{"Key Findings & Outcomes"}
    F --> G["Path 1: Political/Economic Environment<br>limits operating ability → changes asset-liability structure"]
    F --> H["Path 2: Talent Training Gaps<br>limits tech innovation → causes financial management vulnerability"]