Risk Management and Compliance

Risk management and compliance can do more than mitigate threats and safeguard a company’s operations and reputation—it can create value. Our risk and compliance consulting team helps clients turn uncertainty into opportunity.

We view risk management and compliance through a wide-angle lens. While our teams are skilled at applying technical solutions to immediate problems, our focus isn’t simply “putting out fires” but rather on supporting management decision making. By identifying systemic or structural issues, we help organizations across all industries become more ethical and resilient—and more competitive—in ways that a narrower, less strategic assessment of risk and compliance could not achieve. The improvements are innovative, fundamental, and lasting.

Our Approach to Risk and Compliance Consulting

Compliance and Crisis Management

We believe in data-driven, technology-enabled transformations that put talent and culture at the center while optimizing and maturing corporate compliance operations.

Credit Risk Management

We help build advanced end-to-end credit processes to enhance clients’ efficiency while substantially improving the quality of credit decisions.

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Commodity Risk Management

We work with clients to manage financial risk and compliance across the production supply chain. We start by quantifying the spectrum of trading-related, operational, and strategic risks.

Cybersecurity

We blend technical expertise with risk management processes and controls to reduce our clients’ vulnerability while boosting their capacity for rapid response and recovery.

Climate Risk, Adaptation, and Resilience

We help clients accelerate their transition to net zero and ESG conformity. We support measurement and scenario analysis and integrate ESG principles into risk management and compliance practices.

Advanced Risk Analytics

We work with clients to develop best-in-class analytics solutions and support better risk management and compliance decision making.

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Balance Sheet Management

Our risk and compliance consulting team uses a holistic approach to balance sheet, funding, and liquidity management to achieve superior results from a risk-return perspective.

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Operational Risk Management

We help clients establish clear guardrails to reduce the likelihood of reputational damage or regulatory penalties.

We provide strategic, transformational, and technical offerings in risk and compliance, which include—but also extend well beyond—financial risk consulting and compliance consulting. We take a comprehensive view of financial and non-financial risks, including operational and strategic risks. This enables us to help our clients grow their businesses while staying ahead of key risks, anticipating regulatory shifts, and instilling ethical practices—all of which helps earn the trust of employees, stakeholders, investors, and the public.

Client Success in Risk Management and Compliance

How Volkswagen Navigated Its Compliance Monitorship

Hiltrud Werner, former head of integrity and legal affairs at VW, describes how BCG helped the company through a fundamental crisis.

Automotive Industry
A world-leading automobile manufacturer engaged us to design and roll out their global integrity and compliance program. This tremendous transformation program was built on two key pillars: implementing processes and inspiring people. The program strengthened governance and processes: more than ten functional initiatives were rolled out across more than 500 legal entities across the globe. In addition, all company employees have been actively engaged along the journey via a diverse set of communication, training, information, and enablement initiatives—embarking on the path to achieving sustainable culture change.

Payments and Transactions Banking
A market-leading merchant acquirer with a strong footprint in travel and airlines engaged our risk management and compliance and payments teams for immediate crisis response, gaining strength and resilience while continuing to onboard new clients even in the midst of the crisis. We reduced the client’s exposure by more than one-third and expected loss by approximately 85% during the crisis, while doubling the profitability per transaction volume in high-risk verticals.

Energy Industry
Utilities have been severely impacted by dramatically elevated market volatility in European gas and power prices. For a leading utility, BCG identified >€5B of reduced liquidity exposure through a rebalanced gas and power portfolio. We simulated and defined an adjusted hedging strategy, recalibrating the triangle of market, credit, and liquidity risk, and improved financing structures to significantly improve working capital.

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Insurance Industry
For a regional life insurer, we reworked the company’s balance sheet management framework and optimized the balance sheet and capital position through a targeted set of initiatives. The project took the company from losing money to profitable within a few months, and it set the firm up to earn a double-digit return on capital over the coming years.

Our Centers of Excellence

Center for Climate and Sustainability Policy and Regulation 

The Center for Climate and Sustainability Policy and Regulation brings together experts with deep industry- and technology-specific knowledge, providing clients in both the public and private sectors with a comprehensive view of the policies and regulations they face today—and may face tomorrow.

Learn more about the center

Read our latest article, ESG Compliance in an Era of Tighter Regulation

Our risk and compliance consulting experts couple deep technical expertise with strategic orientation, working shoulder-to-shoulder with clients through their toughest crises and challenges. We stay a step ahead, ensuring our clients are prepared for tomorrow.

Meet more experts Contact the Team

Explore Our Insights on Risk and Compliance

Building a Foundation for a Riskier Future

Companies are facing risks that are bigger and more complex than ever before. To create competitive advantage, risk management should be embedded throughout an organization.