Governance, Risk & Compliance (GRC)

Governance, Risk & Compliance (GRC)

Governance, Risk & Compliance (GRC)

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Because Corporate Governance Strengthens Trust

In a complex and constantly evolving industry such as the financial sector, risk management is of central importance. The requirements for companies and their governance, risk, and compliance management systems (GRC systems) have increased substantially. Effective risk management is essential to address the increased regulatory requirements and to avert both financial losses and reputational damage. Identifying risks and strengthening compliance by leveraging the expertise of our Risk, Credit, Trading & Treasury team enables well-informed decisions in corporate management and a successful long-term strategy. This allows you to create stability and bolster the trust of customers and investors, thereby making your company sustainably successful in a challenging market environment.

Focus on Corporate Governance and Compliance Management

Companies in the financial sector must adhere to particularly high standards of compliance and governance, as they are subject to strict regulatory requirements. In addition, it is important to implement robust governance structures that define clear responsibilities and decision-making processes to promote transparency and ethical behaviour. Regular compliance training for staff, internal audits to monitor adherence, and the establishment of sound risk management practices are fundamental components. The combination of rigorous compliance and effective governance not only contributes to risk mitigation, but also strengthens trust in the integrity and stability of the company in the financial sector.

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Our Services

We offer customised risk management solutions for your individual requirements. With our holistic approach, we do not just focus on mere compliance with regulatory requirements but see ourselves as a trusted sparring partner, helping you to integrate best practices, industry trends, and hot topics into your business model and processes. This enables us to provide practical risk management solutions that address long-term stability and profitability as well as compliance with regulatory requirements and supervisory expectations.

From corporate and investment banking to retail banking, the lending business is of paramount importance. Our central Credit Solutions Hub offers you top-level assessment and advice throughout the entire credit life cycle, as well as quantitative and qualitative risk management tailored to your needs. With our expertise, regulatory competence, and 360° solutions from a single source, we provide you with future-proof support to ensure the stability and integrity of your credit processes. Thanks to our horizon-screening of economic developments and trends, we always support you with up-to-date information and know-how. Our team of credit and risk experts supports your company on the path to sustainable success through a robust business model and strategic transformations.

Our team of treasury experts, many of whom have extensive experience in large international banks, provide audit-related and strategic support for almost all issues that arise in this area. From liquidity management and interest-rate and credit-spread risk to short- and long-term refinancing, the IBOR transition and the optimisation of treasury risk reporting, we are at your side with advice and support. Our experienced team is familiar with all the challenges that influence the market and supports our clients in overcoming them as effectively as possible. Whatever is currently affecting you and your company, whether it is the economic consequences of events or keeping pace with digital disruption, our experts will develop solutions tailored to your specific challenges.

We support companies in the financial sector with interdisciplinary expertise in all valuation matters as consultants, independent valuers, or arbitral experts. In particular, we assess financial instruments of various asset classes and varying degrees of complexity, thereby contributing significantly to our clients' decision-making and strategic planning. Our Valuation team is available to you with its expertise to minimise risks, capitalise on opportunities, and shape the sustainable business development of your company effectively and reliably.

From trade life cycle management, trading desk governance, securitisations & STS, collateral management, and post-trade services to EMIR compliance, EU supervisory law, and CRR trading book requirements, we cover an extensive range of finance and capital markets disciplines. We offer our clients a comprehensive portfolio of trading services, which is also regularly used in the context of on-site inspections by financial and banking supervisory authorities. Our consultants stay at the forefront of market developments, enabling them to provide expert support in both traditional securities trading under the WpHG/MiFID II and current developments in EU crypto regulation, in particular MiCA compliance. We leverage our expertise to benefit your company in consulting-related engagements and beyond.

In a challenging business environment, there is a growing need to address increasing complexity through comprehensive analyses and risk modelling. We use our expertise to assess complex economic issues using mathematical and statistical models, enabling well-founded business decisions based on reliable forecasts and ensuring a future-proof business strategy and long-term success for your company. Our experts in quantitative modelling have proven experience in asset quality reviews (AQRs) and on-site inspections by the European Central Bank. Our risk modelling is based on historical simulations, Monte-Carlo simulations, scenario-analysis techniques, various regression models, scoring procedures, and complex mathematical modelling from an economic and normatively determined perspective, among other advanced methodologies. 

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The Challenge of Special Audits

Special audits place the organisation under the spotlight of the regulator and present banks with significant challenges: they are often ordered at short notice, have a profound impact on existing business processes, tie up resources that are urgently needed elsewhere, and entail significant operational risks. BDO delivers targeted added value here:

    1. Support for your organisation: Current regulatory audit priorities and their specific implications for your institution
    2. BDO - Your trusted advisor: Experience and expertise gained from daily collaboration with institutions and regulatory authorities
    3. Quick wins and sustainable solutions: Tailored approaches from our specialists for short-term relief and long-term effectiveness

BDO Risk Models for Governance, Risk, and Compliance

  • Challenger models in the area of credit risk provisioning - both for complex credit exposures and for large volumes of data
  • Infrastructure for evaluating complex financial instruments, exposures in derivatives trading, and xVAs
  • Risk models in line with EGIM standards, in particular IRBA model components
  • ICAAP model approaches and stress tests for various risk types and complexity levels
  • AI model validation
  • Data-based model-validation infrastructure

Our 360° Approach

Our experts in risk management, trading, lending, quant & valuation, and treasury are at your side to identify potential risks early on, apply effective risk mitigation strategies, and support you in implementing regulatory requirements. Our approach combines mathematical modelling with horizon screening to incorporate regulatory, macroeconomic, and ESG trends into risk forecasts at an early stage. We support you as a reliable partner with 360° solutions from a single source and consistently monitor current developments and new compliance requirements for companies in the financial sector.

Contact us!

Dr. Patrick Hueser

Dr. Patrick Hueser

German Public Auditor, Partner, Financial Services
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Matthias Oßmann

Matthias Oßmann

Partner, BDO DIGITAL GmbH
View bio

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