Innovative approaches to GRC: Ensuring compliance during digital transformation

Sabina Ausfelt
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Sabina Ausfelt: MLRO and Head of Regulatory, Risk & Oversight, Juni Technology, Sweden

Journal of Financial Compliance, 2025, vol. 8, issue 4, 302-316

Abstract: This paper addresses the critical need for robust governance, risk and compliance (GRC) frameworks in financial institutions (FIs), particularly in the context of increasing automation and digital transformation. By conducting a systematic literature review, the study identifies significant research gaps in the integration of regulatory compliance within GRC frameworks. The findings reveal a scarcity of focused research on regulatory compliance, despite its crucial role in mitigating risks and ensuring organisational resilience. To bridge this gap, this paper proposes a conceptual model based on business economic theories and organisational learning principles. This model emphasises the continuous processes of knowledge creation, retention and transfer, fostering an adaptive and dynamic GRC framework. The proposed model is designed to be versatile and applicable to various GRC processes such as compliance monitoring, risk assessment and governance practices. The study concludes that more interdisciplinary research is needed to empirically test and refine the proposed model in real-world, regulated environments. Such research will be instrumental in developing more effective GRC strategies that can navigate the complexities of regulatory compliance and risk management in an increasingly automated financial landscape. This article is included in The Business and Management Collection (https://hstalks.com/business/).

Keywords: organisational learning; GRC; governance; risk; compliance; digital transformation; financial industry; finance sector; compliance risk assessment (search for similar items in EconPapers)
JEL-codes: E5 G2 K2 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jfc000:y:2025:v:8:i:4:p:302-316

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