Strategic risk management in financial institutions is essential for ensuring regulatory compliance and financial stability. This review explores the multifaceted nature of strategic risk management, emphasizing its role in navigating the dynamic regulatory landscape. Key components include risk identification, assessment, mitigation, and monitoring, which help institutions align with regulatory requirements and strategic objectives. Financial institutions face various risks, including credit, market, operational, liquidity, and compliance risks, requiring comprehensive risk management frameworks. Regulatory frameworks such as Basel III, the Dodd-Frank Act, and the European Banking Authority guidelines significantly impact capital requirements, liquidity standards, and governance expectations. Technology, particularly data analytics, real-time monitoring, and cybersecurity, plays a crucial role in enhancing risk management and compliance. Best practices include continuous monitoring, regular audits, and scenario analysis. Challenges such as evolving regulations, financial product complexity, and globalization necessitate adaptive strategies and industry collaboration. Case studies highlight successful risk management implementations and lessons from compliance failures. The review underscores the importance of strategic risk management in fortifying regulatory compliance and suggests future trends like AI and machine learning. Regulatory compliance is vital for financial stability, requiring robust internal controls, capital buffers, and transparent reporting. A robust risk management framework integrates compliance with business strategy, ensuring institutions align risk appetite with strategic goals. Best practices for compliance include continuous monitoring, training, and stress testing. Challenges in strategic risk management include evolving regulations, complex financial products, and globalization, which require adaptive strategies and industry collaboration. The review concludes that strategic risk management and regulatory compliance are critical for financial institutions to ensure stability, resilience, and long-term success in a complex global environment.Strategic risk management in financial institutions is essential for ensuring regulatory compliance and financial stability. This review explores the multifaceted nature of strategic risk management, emphasizing its role in navigating the dynamic regulatory landscape. Key components include risk identification, assessment, mitigation, and monitoring, which help institutions align with regulatory requirements and strategic objectives. Financial institutions face various risks, including credit, market, operational, liquidity, and compliance risks, requiring comprehensive risk management frameworks. Regulatory frameworks such as Basel III, the Dodd-Frank Act, and the European Banking Authority guidelines significantly impact capital requirements, liquidity standards, and governance expectations. Technology, particularly data analytics, real-time monitoring, and cybersecurity, plays a crucial role in enhancing risk management and compliance. Best practices include continuous monitoring, regular audits, and scenario analysis. Challenges such as evolving regulations, financial product complexity, and globalization necessitate adaptive strategies and industry collaboration. Case studies highlight successful risk management implementations and lessons from compliance failures. The review underscores the importance of strategic risk management in fortifying regulatory compliance and suggests future trends like AI and machine learning. Regulatory compliance is vital for financial stability, requiring robust internal controls, capital buffers, and transparent reporting. A robust risk management framework integrates compliance with business strategy, ensuring institutions align risk appetite with strategic goals. Best practices for compliance include continuous monitoring, training, and stress testing. Challenges in strategic risk management include evolving regulations, complex financial products, and globalization, which require adaptive strategies and industry collaboration. The review concludes that strategic risk management and regulatory compliance are critical for financial institutions to ensure stability, resilience, and long-term success in a complex global environment.