Regulatory Due Diligence

Kroll is a leader in performing regulatory and compliance reviews that complement the financial, commercial and legal M&A transaction due diligence process.

Explore Financial Services Compliance and Regulation

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Regulatory risk is the risk to earnings, capital and reputation associated with a failure to comply with regulatory requirements and expectations. There are prevailing standards of compliance that regulators hold businesses to and if these regulatory expectations are met, it significantly minimizes regulatory risk.

Our reviews are designed to provide a quantitative, non-emotive assessment of the risks that compliance, operational control and regulatory frameworks can pose to the business. This includes:

The key regulatory risks
Risks as potential impact on revenue
Whether controls are in place to mitigate risks
Opportunities for improving the regulatory and compliance infrastructure and quantifying expected capital outlay

Our regulatory due diligence adds value throughout the transaction process by:

Identifying key strengths, weaknesses, opportunities and threats
Providing an analysis against industry best practice and peers
Providing a view of whether the business has the governance, compliance and risk infrastructure to support growth aspirations
Identifying areas for further investment and quantifying expected capital outlay

Assisting during warranties and indemnities negotiation
Producing an action plan to strengthen the business going forward
Complementing the commercial, financial and legal due diligence processes
Providing an analysis of relative regulatory risk per jurisdiction or service line

Kroll also provides operational due diligence services. To know more click here.