This study explores how systemic risks are managed in strategic alliances between traditional banks and FinTech firms, with a focus on the Swedish financial sector. Through in-depth interviews with 11 banking and FinTech professionals, the research reveals that risk management in these collaborations is primarily compliance-oriented, relying heavily on regulatory frameworks like DORA, NPAP, and AML. While these mechanisms establish essential baseline protections, they often fail to address residual risks, those not explicitly covered by regulations - leaving potential vulnerabilities unmonitored. The findings highlight governance gaps in these partnerships. While banks are typically viewed as ultimately responsible for systemic risk, this responsibility is rarely formalized or effectively managed. Cultural and operational differences between the two sectors further complicate risk governance, as banks' hierarchical, risk-averse approaches contrast sharply with fintech's agile, innovation-driven models. These imbalances lead to gaps in risk identification and mitigation. The study underscores the limitations of relying solely on contractual agreements and static compliance measures in dynamic financial ecosystems. It calls for more integrated, proactive approaches to risk management, suggesting collaborative frameworks that extend beyond regulatory minimums to ensure the long-term resilience of bank-FinTech partnerships.