Prices are forecast to drop slightly due to competitive pressures.
Los Angeles, CA (PRWEB) May 24, 2014
Risk management consulting services have a buyer power score of 4.3 out of 5. This score reflects strong negotiating strength for buyers. Demand for risk management consulting services has increased over the past three years as companies have sought ways to minimize their exposure to market risk arising from the recent recession. “Buyers across all sectors face some form of business risk, and have a consistent need to identify, analyze, address and monitor internal and external threats,” says IBISWorld business research analyst Andrew Rebhan. This steady demand, coupled with recovering corporate profit levels and a growing number of US businesses is expected to keep service prices relatively stable through 2016. Although increasing prices have hurt negotiation power, buyers have benefited from low price volatility, which has reduced the risk of large price swings.
Although this market is moderately concentrated, many new suppliers continue to enter the market, giving buyers more choices during negotiations. Larger management consulting firms with diverse service lines have started to incorporate risk management consulting and insurance advisory services as a means to bolster their portfolios, further increasing the intensity of competition between vendors. “These competitive factors are expected to decrease service prices slightly through 2016, although this drop will not be very significant,” says Rebhan. Suppliers in this market have seen their profit margins increase due to decreasing wages and overhead expenses, which has also opened up opportunities for buyers to negotiate for lower service prices, particularly if entering into long-term contracts.
Risk management is crucial for business owners, often requiring the assistance of knowledgeable consultants who can develop custom policies, procedures and practices to mitigate or prevent costly threats. The potential damage that buyers face from enterprise, operational, credit or technology risks can shift more negotiation power to suppliers given the high value they bring through their services. Nevertheless, many other factors in the purchasing process work in the buyer's favor, including the low total cost of ownership, low supply chain risk and high number of substitute services. Major vendors include Marsh & McLennan Companies Inc., Aon PLC, PricewaterhouseCoopers and Arthur J. Gallagher & Co. For more information, visit IBISWorld’s Risk Management Consulting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of risk management consulting services. Risk management refers to the process of minimizing an organization’s exposure to unforeseen events that may cause adverse effects to its operations. Suppliers assist buyers by developing procedures and practices to identify, assess, mitigate and monitor risk. Risk management consulting may cover broker selection, asset diversification, insurance audits, claims management, development of loss control programs and litigation support services. Risk management consultants do not sell insurance. This report does not cover investigative services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.