Melbourne, Australia (PRWEB) March 13, 2014
The past five years have transformed the way that businesses approach and manage their exposure to risk. IBISWorld industry analyst Sebastian Chia states “the global financial crisis revealed that many firms had poorly managed risk management procedures or were simply unaware of their risk exposure.” Following this, businesses sought to reassess their risk management procedures, which has led to strong growth in the Risk Management Consulting industry. Rising levels of compliance and regulation have also contributed to increased demand. Over the five years through 2013-14, the Risk Management Consulting industry is expected to grow at an annualised 4.1%.
The industry is dominated by the big four accounting firms, which have extended their traditional internal audit offerings to encompass more services including environmental, IT, supply chain and compliance risk consulting. Risk management consulting has provided a valuable revenue earner for these accounting firms, as it provides steady income stream despite low or high economic growth. According to Chia, “Companies turn to the industry to reduce their exposure to risk in times of low growth and use risk management consulting services to optimise their processes or expand operations in times of high growth.” In 2013-14, the industry is expected to grow by 3.7% to reach $913.9 million. Rapid technological change across the social and business environment has led to a change in the way businesses interact with clients and the public. This has brought changes to the business models of some firms to take into account growth in big data and analytics, cloud services and exposure to social networks. Risk management consultants that can successfully target these clients and provide new risk management procedures for technology, compliance and reputational risks, will benefit from this change.
The Risk Management Consulting industry is characterised by a low level of market share concentration. This low level of concentration is largely due to the diversity of risk management services and the vast number of different downstream business clients, making it difficult for any one operator to capture a significant share of the industry. Despite this, there is a higher level of concentration within some market segments, with the big four accounting firms providing the majority of services directed to financial and professional service business clients due to their size and scope. IBISWorld expects that concentration will remain mostly stable over the coming five years as emerging risks bring on a number of new niche enterprises that specialise is different risk forms. Major industry players include Deloitte Touche Tohmatsu, KPMG, PricewaterhouseCoopers and Ernst & Young. For more information, visit IBISWorld’s Risk Management Consulting report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry provides risk management consulting services. The industry does not include the provision of risk management software.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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