Non-Financial Risk Management
Comprehensive consulting for the identification, assessment, and management of non-financial risks in your organization. From Operational Risk to Compliance and Cyber Risks, through to ESG risks and reputation management.
- ✓Regulatory Compliance
- ✓Improved Risk Resilience
- ✓Optimized Business Processes
Your strategic success starts here
Our clients trust our expertise in digital transformation, compliance, and risk management
30 Minutes • Non-binding • Immediately available
For optimal preparation of your strategy session:
- Your strategic goals and objectives
- Desired business outcomes and ROI
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Comprehensive Non-Financial Risk Management
Our Strengths
- Deep expertise in regulatory requirements (BaFin, EBA)
- Experience with advanced risk management methods
- Proven implementation strategies with demonstrable success
Expert Tip
Organizations with integrated NFR management systems experience 37% lower regulatory penalties and respond 28% faster to market disruptions.
ADVISORI in Numbers
11+
Years of Experience
120+
Employees
520+
Projects
We guide you with a structured approach in developing and implementing your Non-Financial Risk Management.
Our Approach:
Analysis of existing risk situation and processes
Development of tailored risk management frameworks
Implementation, training, and continuous improvement
"Effective management of non-financial risks is crucial for risk resilience and the long-term success of an organization in an increasingly complex regulatory and business environment."
Melanie Düring
Head of Risk Management
Our Services
We offer you tailored solutions for your digital transformation
Operational Risk Management
Identification, assessment, and management of operational risks in your organization
- Process Risk Management
- Business Continuity Management
- Outsourcing Risk Management
Cyber and IT Risk Management
Protection of your IT infrastructure and data from cyber threats
- IT Risk Assessment and Management
- Cyber Security Concepts
- Data Protection and Information Security
Compliance and Anti-Financial Crime
Compliance with regulatory requirements and combating financial crime
- Anti-Money Laundering and KYC
- Compliance Management Systems
- Fraud Prevention and Forensics
Our Competencies
Choose the area that fits your requirements
Anti-financial crime consulting for financial institutions and regulated companies. We build end-to-end AFC frameworks: AML compliance, KYC processes, sanctions screening and fraud detection with AI-powered analytics.
Anti money laundering and AML compliance for financial institutions. Risk analysis, transaction monitoring, KYC and regulatory requirements.
Professional crisis management for organisations. Crisis planning, business continuity, communication and recovery in crisis situations.
Cyber risks encompass all threats arising from IT vulnerabilities, cyberattacks and third-party dependencies. Since DORA (January 2025), banks, insurers and payment service providers must demonstrate a documented ICT risk management framework. ADVISORI supports risk identification, framework development and incident response.
Identify, assess and manage ICT risks – from BAIT to DORA. We support financial institutions in developing and implementing regulatory-compliant IT risk management frameworks.
KYC (Know Your Customer) compliance is a regulatory obligation under Germany's Anti-Money Laundering Act (GwG) and EU AML directives. ADVISORI helps banks and financial institutions implement efficient KYC processes — from customer identification and due diligence to continuous monitoring. With risk-based approaches and modern technology, we transform your KYC compliance into a competitive advantage.
We design and implement tailored ORM frameworks for your institution – from risk identification through RCSA and scenario analysis to regulatory-compliant loss data collection and KRI monitoring.
More Services in Risk Management
Frequently Asked Questions about Non-Financial Risk
What are non-financial risks and why are they important?
Non-Financial Risks (NFR) encompass all risks that are not directly related to financial market movements or credit defaults, but can still have significant financial and reputational impacts:
🔍 **Definition and Delineation**
📊 **Significance for Organizations**
⚙ ️ **Management Challenges**
What are the regulatory requirements for Non-Financial Risk Management?
Regulatory requirements for Non-Financial Risk Management have increased significantly in recent years and include various regulations and standards: **BaFin and MaRisk
** **5th MaRisk Amendment 2023**: Explicit requirements for integrating NFR into risk-bearing capacity calculations **Three-Lines-of-Defense Model**: Mandatory implementation with central NFR management unit **Risk Capital Quantification**: Requirement to use advanced scenario analysis methods **Annual Stress Tests**: Mandatory execution for critical NFR categories such as cyber resilience or ESG compliance
🇪 🇺 **European Banking Authority (EBA)
** **EBA Guidelines on ICT Risk Assessment (2024)**: Standardized KRIs (Key Risk Indicators) for IT system disruptions **EBA NFR Reporting Standard v2.1**:
78 mandatory data elements for risk disclosure **SREP Process**: Integration of NFR into the supervisory review and evaluation process **Proportionality Principle**: Requirements dependent on size, complexity, and risk profile of the institution **International Standards
** **Basel Committee on Banking Supervision**: Guidelines for operational risk management **ISO 31000:2024**: Risk management standard with expanded focus on AI-based risk early detection **COSO ERM 2023.
How do you develop an effective Non-Financial Risk Management Framework?
Developing an effective Non-Financial Risk Management Framework requires a structured approach and integration of various components: **Fundamental Architecture
** **Governance Structure**: Clear definition of roles, responsibilities, and reporting lines **Three-Lines-of-Defense Model**:
150 risk drivers **Risk Appetite**: Definition of quantitative and qualitative risk appetite statements for all NFR categories **Methodological Components
** **Risk Assessment Methodology**: Combination of qualitative and quantitative approaches **Scenario Analysis**: Development of plausible worst-case scenarios for critical risks **Key Risk Indicators (KRIs)**: Definition of early warning indicators with thresholds **Control Framework**: Systematic capture and assessment of controls **Loss Data Collection**: Systematic capture and analysis of loss events **Technology Support
** **GRC Platforms**: Integrated Governance, Risk & Compliance systems **Automated Control Testing**: Continuous.
What role does the Three-Lines-of-Defense Model play in NFR management?
The Three-Lines-of-Defense Model forms the organizational backbone of effective NFR management and defines clear responsibilities:
🏢 **First Line of Defense**
🔍 **Second Line of Defense**
🔎 **Third Line of Defense**
⚙ ️ **Implementation Aspects**
How can non-financial risks be quantified?
Quantifying non-financial risks requires advanced methods that combine qualitative and quantitative approaches:
📊 **Statistical Modeling Approaches**
🔢 **Scenario Analysis Techniques**
📱 **Data-Driven Approaches**
🧮 **Risk Metrics and KRIs**
What role do ESG risks play in Non-Financial Risk Management?
ESG risks (Environmental, Social, Governance) have evolved into a central component of NFR management:
🌍 **Environmental Risks**
👥 **Social Risks**
🏛 ️ **Governance Risks**
📋 **Regulatory Requirements**
How do you integrate cyber risks into NFR management?
Integrating cyber risks into NFR management requires a specialized approach:
🔒 **Cyber Risk Taxonomy**
🛡 ️ **Cyber Risk Assessment**
📊 **Cyber KRIs and Metrics**
🔄 **Cyber Resilience**
What role does AI play in modern NFR management?
Artificial Intelligence is revolutionizing NFR management through effective applications:
🔍 **Risk Identification and Early Detection**
📊 **Risk Assessment and Quantification**
🛠 ️ **Risk Control and Monitoring**
⚠ ️ **Challenges and Risks**
How do you measure the success of NFR management?
Measuring success in NFR management requires a differentiated system of metrics:
📉 **Risk Reduction Metrics**
🎯 **Control Effectiveness Metrics**
💼 **Business Value Metrics**
🔄 **Process Metrics**
How do you integrate NFR management into corporate strategy?
Strategic integration of NFR management requires a comprehensive approach:
🎯 **Strategic Alignment**
🏛 ️ **Governance Integration**
💼 **Business Process Integration**
🌱 **Cultural Integration**
What role do reputation risks play in NFR management?
Reputation risks present a special challenge in NFR management:
🔍 **Characteristics of Reputation Risks**
📊 **Assessment Approaches**
🛡 ️ **Preventive Measures**
🔄 **Reactive Measures**
How does NFR management differ across industries?
NFR management has industry-specific characteristics:
🏦 **Financial Services Sector**
🏭 **Industrial Sector**
🏥 **Healthcare**
🛒 **Retail and Consumer Goods**
How do you develop effective Key Risk Indicators (KRIs)?
Developing effective Key Risk Indicators (KRIs) follows a structured process:
🎯 **Characteristics of Effective KRIs**
📊 **Development Process**
🔢 **KRI Types by Risk Categories**
📈 **Reporting and Monitoring**
How do you implement effective incident management for non-financial risks?
Effective incident management for non-financial risks includes several key components:
🔍 **Incident Identification and Classification**
🛠 ️ **Incident Response and Management**
📊 **Root Cause Analysis and Lessons Learned**
📈 **Incident Reporting and Analysis**
How do you integrate outsourcing risks into NFR management?
Integrating outsourcing risks requires a specialized approach in NFR management:
🔍 **Risk Assessment Before Outsourcing**
📋 **Contractual Safeguards**
🔄 **Ongoing Monitoring**
🛡 ️ **Governance and Oversight**
How do you integrate compliance risks into NFR management?
Integrating compliance risks into NFR management requires a systematic approach:
📋 **Compliance Risk Assessment**
🔍 **Compliance Monitoring**
📊 **Compliance Reporting**
🛠 ️ **Compliance Controls**
What role does Business Continuity Management play in the NFR framework?
Business Continuity Management (BCM) is an integral part of the NFR framework:
🔄 **BCM Lifecycle**
🎯 **Key Components**
📊 **BCM Metrics and KRIs**
🔗 **Integration into NFR Framework**
How do you develop a positive risk culture for NFR management?
Developing a positive risk culture is crucial for effective NFR management:
👥 **Cultural Fundamentals**
🎓 **Training and Awareness**
🎯 **Incentive Systems and Performance Management**
📊 **Culture Measurement and Development**
How do you integrate NFR management into mergers and acquisitions (M&A)?
Integrating NFR management into M&A processes is crucial for transaction success:
🔍 **Due Diligence Phase**
💰 **Valuation and Negotiation Phase**
🔄 **Integration Phase**
📊 **Post-Integration Monitoring**
What does the future of NFR management look like?
The future of NFR management will be shaped by several trends and developments:
🤖 **Technological Innovations**
🌐 **Regulatory Developments**
📊 **Methodological Advancements**
🔄 **Organizational Trends**
Latest Insights on Non-Financial Risk
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