Restructuring of Governance Functions
An internationally active Family Equity Holding faced a strategic turning point: The Legal, Compliance, Risk & Governance division was to be restructured – with a focus on gradually reducing the internal audit department and largely transferring it to an external service provider. To ensure governance quality during the transition phase, an experienced interim manager was appointed, bringing expertise in building, downsizing, and transforming audit organizations.
Structural Transformation and Audit Security
The transformation involved several critical challenges: The reduction of internal audit capacities had to avoid creating any audit or governance risks, while simultaneously maintaining all regulatory-required audit processes. Additionally, the complexity of the co-sourcing model with a global service provider had to be seamlessly integrated into the overarching governance architecture. At the same time, organizational stability had to be maintained, and personnel uncertainties during the change process needed to be mitigated.
Targeted Transformation
For the systematic reorganization, strategic levers were defined: A detailed transition and downsizing plan ensured the gradual transfer of parts of the group audit to the external partner, while a clear co-sourcing framework (including roles, responsibilities, and service levels) formed the basis for collaboration. A risk-oriented audit universe prioritized the remaining audit activities, and efficient interface management between the holding, business units, and service provider ensured smooth operations. In parallel, regulatory compliance – particularly in governance and risk reporting – was maintained, while a communication and change management concept minimized internal uncertainties.
Stabilization, Handover & Governance Assurance
The implementation followed a clear transformation path: In phased steps, personnel and tasks were transferred to the external partner, accompanied by monthly governance and audit steering that monitored quality and risks. A standardized audit and reporting template harmonized processes with the service provider, while a continuous control and escalation model ensured transparency. Employees were supported through targeted change management to enable smooth knowledge transfer and a stable handover.
