Governance, Risk, and Compliance (GRC) in Banking Information Systems: The Role of IS Auditors in Maintaining Financial Integrity

Abstract

This research examines the critical role of Information Systems (IS) auditors in
implementing Governance, Risk, and Compliance (GRC) frameworks within banking information systems to maintain financial integrity and prevent fraud. Through
a mixed-methods approach combining quantitative analysis of banking sector data
and qualitative interviews with IS auditing professionals, this study develops a comprehensive model that demonstrates how effective GRC implementation correlates
with reduced financial irregularities and enhanced compliance outcomes. The research analyzes data from 150 financial institutions over a five-year period, revealing
that organizations with mature GRC frameworks experience 42% fewer security incidents and 67% faster compliance reporting cycles. The study introduces a novel
GRC Maturity Assessment Framework that quantifies the relationship between IS
auditing practices and financial integrity metrics. Findings indicate that IS auditors’ technical expertise in cybersecurity controls, data analytics, and regulatory
requirements significantly enhances the alignment between technology governance
and fraud prevention objectives. The research contributes to both theoretical understanding and practical implementation of GRC frameworks in the banking sector,
providing actionable insights for financial institutions seeking to strengthen their
financial integrity through improved information systems governance.