The BIOS is mearly what you see when you turn on your GP32 (relatively speaking). It doesn't have control once the program is loaded, unless the program somehow gives back control. When a program crashes, this sends an interrupt to the CPU which causes a power reset (soft reset), I think. It isn't like the BIOS was waiting for the program to end, like DOS remains invisably in memory.
I haven't done any GB/GBA coding, but it could be that the soft reset is an interrupt in the CPU. However, it is more likely something standard added to all GB/GBA games.