Strategy for Implementing Governance, Risk Management, and Compliance (GRC) as an Effort to Minimize Operational Risk in the Financial Industry

Abstract

The financial industry operates in a complex environment where effective governance, risk management, and compliance (GRC) are critical for minimizing operational risks. This study aims to explore strategies for implementing GRC frameworks tailored to the unique challenges of the financial sector. Using a mixed-methods approach, the research incorporates semi-structured interviews with key stakeholders and a quantitative survey to gather insights into current GRC practices and their effectiveness. The findings reveal that organizations with integrated GRC frameworks experience significant reductions in compliance breaches and operational failures. Additionally, strong leadership commitment and a culture of risk awareness are crucial factors in successfully implementing GRC strategies. The study highlights financial institutions need to adopt customized GRC approaches that align with their specific regulatory environments and operational complexities. By bridging theoretical perspectives with empirical evidence, this research contributes to the existing body of knowledge by providing practical recommendations for enhancing GRC initiatives in the financial sector. The insights gained from this study reinforce the importance of an integrated GRC strategy and emphasize the need for ongoing adaptation to the evolving risk landscape. Ultimately, this research is a valuable resource for practitioners and scholars seeking to improve operational resilience and compliance within the financial industry.