Frameworks & Standards

Organizations face the challenge of complying with a wide range of legal and regulatory requirements in the field of corporate governance. These regulations are designed to effectively manage and monitor risks while ensuring transparency, integrity, and sustainable business practices. Recognized frameworks and standards play a crucial role in systematically and efficiently implementing these requirements. Frameworks and standards provide proven methods and structures for implementing and managing governance systems, particularly Internal Control Systems (ICS), Compliance Management Systems (CMS), and Risk Management Systems (RMS), while also ensuring oversight through an Internal Audit System (IAS).

1. Regulatory requirements: National and international regulations, such as Stock Corporation Act (AktG) or the Commercial Code (HGB), along with standards and recommendations from the German Corporate Governance Code (DCGK) and various professional guidelines, impose high demands on ICS, CMS, RMS, and IAS. Organizations must ensure their governance structures comply with these legal and regulatory requirements.
2. Strategic and competitive advantages: Robust ICS, CMS, RMS, and IAS based on recognized frameworks and standards allows for the systematic integration of governance principles into corporate strategy, which allows responsibilities to be clearly defined and processes to be managed efficiently.
3. Transparency and compliance: Well-structured frameworks support regulatory-compliant reporting and strengthen the trust of investors, regulators, and other stakeholders.
4. Risk management: Early identification and management of financial, operational, and regulatory risks through integrated governance systems reduce liability risks and enhance corporate resilience.
5. Competitive advantage: Strong governance structures not only help to mitigate risks but also create trust among investors and market participants, driving long-term value creation and sustainable growth.

By applying frameworks and standards, organizations can ensure compliance with legal and regulatory requirements, but also minimize risks, enhance efficiency, and build stakeholder trust.

At BRL, we help organizations not only ensure effective corporate governance through recognized frameworks and standards but also use it as a strategic advantage. With our expertise, we provide individual solutions that align with your governance structures and strategic objectives. Based on national and international recognized frameworks and best practices, we assist in the holistic comprehensive of ICS, CMS, RMS, and/or IAS. Additionally, we evaluate the design and operational effectiveness of your corporate governance using established audit standards to identify weaknesses and highlight potential optimization opportunities. 

1. Implementation and improvement of governance systems: Development and implementation of an ICS, CMS, and/or RMS based on recognized frameworks such as the COSO Internal Control – Integrated Framework (COSO 1) or COSO Enterprise Risk Management (COSO 2 – ERM). Additionally, development and implementation of an IAS according to professional standards of the German Institute for Internal Auditing (DIIR) or the Global Internal Audit Standards (GIAS) of the Institute of Internal Auditors (IIA).
2. Support in preparing and conducting governance audits: Evaluation of design and operative effectiveness of ICS, CMS, RMS, and/or IAS based on recognized national or international standards, such as:
   • Audit of the Early Risk Detection System under § 317 (4) HGB (IDW PS 340)
   • Audit of Internal Control Systems for service providers (IDW PS 951, ISAE 3000/3402, or SSAE 18)
   • Audit of Compliance Management Systems (IDW PS 980), e.g., with a focus on anti-money laundering following IDW Practice Note 1/2022: Design and Audit of a CMS for Preventing Money Laundering and Terrorist Financing in the Non-Financial Sector under IDW PS 980.
   • Audit of Risk Management Systems (IDW PS 981 or DIIR Auditing Standard No. 2)
   • Audit of Internal Control Systems for Internal and External Reporting (IDW PS 982), e.g., with a focus on ESG reporting following IDW Practice Note 4/2023: Design and Audit of the ICS for Sustainability Reporting in accordance with IDW PS 982
   • Audit of Internal Audit Systems (IDW PS 983 or DIIR Auditing Standard No. 3)
3. Training and coaching: Practical training in the implementation of governance systems based on recognized frameworks and standards to ensure efficient and audit-proof adherence to legal and regulatory requirements.
4. Process documentation: Development and optimization of process documentation and work instructions for the adequate and effective implementation, maintenance, and continuous improvement of governance systems in accordance with recognized frameworks and standards. 

Learn more about our services in the area of ‘Frameworks & Standards’ and feel free to reach out to our Experts for a non-binding consultation experts without obligation.