Financial & Risk Effectiveness
Increasing globalization and the growing interconnectedness of the capital markets are presenting the finance and risk function with new challenges: Those in these positions must ensure compliance with statutory regulations, while also managing to integrate the function into the strategic process.
Accounting must ensure that the business model is correctly represented in the balance sheet and P&L account, prevent unnecessary volatilities in the results and focus the controlling activities on the strategic analysis.
Besides measuring, limiting and reporting risk, the risk function must also serve as the company's strategic risk analyst. It must protect the positioning of the business model from strategic risks that threaten assets.
These tasks demand comprehensive expertise that encompasses issues ranging from strategic and methodological competence to processes and technology. To optimally support our finance and risk clients, Roland Berger Strategy Consultants has put together a dedicated team of experts.
Financial service providers see themselves confronted with fundamental changes. The subprime crisis, highly volatile capital markets, mark-to-market balance sheet preparation, risk transfer through securitization and increasing demand for transparency – these are just a few of the new challenges.
This development leads to finance and risk management taking on an increasingly active role in the strategy process. Based on our long years of experience, both in strategy development and finance & risk management, we offer financial and risk effectiveness competence tailored to individual needs. Our offer serves corporate functions (CFO/CRO/CEO) as well as business units in banking, insurance, asset management and corporate treasury, covering the following topics:
- Performance management
- Capital and balance sheet management
- Finance and risk governance
- Finance and risk technology
The increasing requirements for a transparent communication of the financial situation and the strategic alignment present new demands for strategic performance management. Together with our clients, we analyze the individual business strategy (at the corporate or business unit level). Our experts then develop specific key performance indicator (KPI), thus bringing the strategic targets into a measurable form. Using this as a basis, we identify the value drivers of the business model to understand the development of the KPIs, develop management approaches based on those drivers and design an overall reporting concept. This approach makes it possible to fully and consistently represent the business strategy in reporting and performance management.
Capital and Balance Sheet Management
Capital and balance sheet management is a key basis for efficiently managing a bank's stability and risk profile. In implementing the bank's long-term strategy, an efficient allocation of capital is a decisive lever for guaranteeing the bank's financial success and managing financial risks. The models and methods currently employed are often obsolete, failing to achieve the returns demanded by investors or leading to the necessity of taking unreasonable risks. We offer innovative approaches and the required experience in the areas of capital allocation, asset & liability management, credit risk treasury and their impacts on finance & risk management.
Finance and Risk Governance
Besides increasing the effectiveness of organizational structures through restructuring and reducing complexity, we also support our clients in closely dovetailing the finance and risk function. An integrated perspective is necessary for issues such as valuation, reporting (management and financial accounting) or ICAAP, and requires an in-depth understanding of the finance and risk processes. With concepts tailored to our clients' individual situations, we increase both effectiveness and transparency. The latter is playing an increasingly important role for the various stakeholders, such as investors, rating agencies and regulatory authorities.
Finance and Risk Technology
Having a cost-effective IT architecture aligned with the business model is becoming increasingly important in times of shrinking margins. With our knowledge of the finance and risk function, we support our clients in reviewing the complexity of their existing infrastructure, considering both current and future needs. Numerous successful projects have shown us that streamlining processes and increasing infrastructural efficiency can save costs, especially in the finance and risk area.