The role of compliance oversight in improving banking risk management in light of digital transformation

Abstract

Abstract  

This research aims to highlight compliance control procedures and their role in improving risk management processes in Iraqi banks during the digital transformation, particularly concerning the digital services they offer to customers. To achieve these objectives, the research employed an inductive approach in its theoretical aspect, reviewing previous literature and studies, and a descriptive-analytical approach in its practical aspect, utilizing a checklist. The research population consisted of Iraqi banks, while the sample comprised three banks: Al-Taif Islamic Bank, the International Development Bank, and Baghdad Bank. The research reached several conclusions, most notably: the necessity of fulfilling fundamental requirements for banks to successfully provide advanced services and achieve customer satisfaction, such as digital infrastructure, qualified human resources, legal and regulatory frameworks, encouraging tax procedures, rapid adaptation to external changes, and continuous research and development. The research also demonstrated the crucial role of the compliance officer in risk management through participation in identifying, assessing, and responding to risks, in addition to holding regular meetings with senior and executive management to develop plans and set risk-related objectives.  The research recommended the need to enhance the application of digital services and activate continuous monitoring, adopt modern methods to address financial crises, and the need for the compliance monitor to pay attention to methods of continuous inspection to ensure the existence of modern automated methods to address financial crises. Therefore, he should hold meetings with senior management and executive management to set goals and identify the risks associated with them..

Keywords:Compliance, Banking Risk Management, Digital Transformation.