Price growth is forecast to flatten due to competitive pressure, but continued investment in reactive and preventative risk management consulting services will keep demand stable.
Los Angeles, CA (PRWEB) October 11, 2014
Risk management consulting services have a buyer power score of 4.2 out of 5. This score reflects strong negotiating leverage for buyers. Demand for risk management consulting services has increased over the past three years as companies have sought more 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 procurement analyst Michelle Hovanetz. “This steady demand, coupled with recovering corporate profit levels and a growing number of US businesses, has led to slowly rising service prices in the three years to 2014.” Although increasing prices have hurt negotiation power, buyers have benefited from low price volatility, which has reduced the risk of large price swings.
Although the risk management consulting services market is moderately concentrated, many new suppliers continue to enter it, giving buyers more vendors to choose from during negotiations. Larger management consulting firms with diverse service lines have started to incorporate risk management consulting and insurance advisory services as a means of bolstering their portfolios, further increasing the intensity of competition between vendors. This competition is expected to flatten price growth through 2017, benefiting buyers. “Supplier profit margins have increased due to decreasing wages and overhead expenses, which has also opened up opportunities for buyers to negotiate lower service prices, particularly if entering into long-term contracts,” adds Hovanetz.
Risk management is crucial for business owners that require the assistance of knowledgeable consultants to 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 give suppliers more leverage in negotiations, given the high value of the services they bring to the table. 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 a high number of substitute services. 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 have adverse effects on 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
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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.