Risk Management

Identifying and managing risk—financial, nonfinancial, strategic, or operational risk—requires more than just selecting the right tools. At BCG, we view risk management as an organizational mindset that helps companies confront uncertainty, increase transparency, and embed adaptability and resilience in their teams, processes, and systems.

Preparing for risks is a data-driven exercise, but too often critically important external and internal data is buried or otherwise unavailable to the risk management function. BCG helps clients create an organized, cross-functional flow of information and data, enhanced by AI and analytics.

With this flow in place, conversations about risk-reward balance become part of day-to-day business operations, creating an adaptive risk organization that is well versed in strategic risk management and ready to respond to challenges—even to potentially devastating events, like the COVID-19 pandemic. Integrating risk assessment and scenario-based stress testing into the regular operating rhythm creates an ever-improving system instead of a one-off solution. Our risk management consultant teams are experienced with various risk types and the critical enablers that make up effective systems as well as with global and local regulations for risk management.

How BCG Helps Build Better Risk Management Functions

Our risk management teams introduce tools and ways of working that apply to and across industries and risk types.

Advanced Analytics

Already adept at using models and data, the risk management function can provide faster detection and support—with more differentiated reactions—by combining advanced analytics with big data and AI-driven machine learning. In partnership with BCG GAMMA, we build and deploy the tools and technologies needed to create competitive advantage in uncertain times.

Center for CFO Excellence

Today’s environment provides an opportunity to improve risk management practices. The COVID-19 crisis has made liquidity risk and equity and debt management critical action areas for the CFO. Additionally, the imperative remains for CFOs not only to act as a value steward but also to play a vital role in company-wide digital transformation. BCG’s Center for CFO Excellence bundles comprehensive capabilities with global experience to help CFOs position their function for success today and tomorrow.

The Digital Treasury

Demands on the treasury function have grown as the need for risk management tools and analysis has sharpened with digitization and globalization. Treasuries can accelerate their digital maturity by investing in a suite of advanced tools, including process automation and blockchain. BCG research shows that such investments reduce treasury operating costs by an average of 20% to 30% and increase average net investment income contributions by 10% to 15%. Our Treasury Sandbox tool helps clients along their digitization journey and improves existing forecasts.

We also have deep expertise in regulatory compliance and risk management strategies for financial institutions and insurers.

Meet Our Risk Management Consultants and Leaders

Learn More About Risk Management Across Industries



BCG’s tenth annual survey of the health and performance of the banking industry considers the impact of COVID-19 and demonstrates the need to accelerate digitization—now. Risk, treasury, and compliance functions can help banks respond to the present crisis and lay the groundwork for the bank’s long-term success—but they’ll need to leverage advanced technologies and practices.

Managing Risk in the Face of New Insurance Regulations

Risk has to be managed at the business level, says BCG's Matteo Coppola. Risk management winners will be those that deal with regulations by embedding risk in the early stages of strategy and planning.

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Perspectives on Strategy and Value: Your Monthly Newsletter on Corporate Finance and Strategy

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Perspectives on Strategy and Value: Your Monthly Newsletter on Corporate Finance and Strategy