Three leading Risk Consulting market

Date: 26-08-2007

Deloitte, KPMG and PricewaterhouseCoopers (PwC) are leading the $50 billion market in end-to-end risk consulting, according to new research.

Forrester Research analysed the market and scored the three firms highest due to the breadth of their risk service offerings and the supporting intellectual property and theme. Deloitte's focus is on "risk intelligence", KPMG ties its thought leadership to "embedded" risk management while PwC offers "integrated GRC" [governance, risk and compliance], or iGRC.

While three firms led the top end of the category, Ernst & Young (EY), Protiviti, IBM, BearingPoint and Oliver Wyman rated well, and were considered leading and competitive providers by the Forrester analysis.

In terms of enterprise risk strategy, Deloitte, KPMG, PwC and EY were found to have the most detailed offerings and the most engagements that involved senior executives and boards of directors, with Protiviti and Oliver Wyman also ranking highly. Protiviti joined the leading pack in the field of risk organisation and design.

However, the leaders changed when risk technology development and systems integration was assessed. Deloitte, IBM, Protiviti and BearingPoint were seen as offering the most complete service for designing, building and integrating risk directly into business applications, Forrester said.

PwC was the only provider ranked as having a complete set of offerings across financial/treasury risk, geopolitical risk, legal and regulatory risk, operational risk and technology risk. A complete service was described as a "detailed and expansive offering of risk services supported by published thought leadership and extensive intellectual property". Geopolitical risk was seen as an area of development for most of the providers, with PwC alone able to back its offering with thought leadership and intellectual property.

While the report named leaders in each field, Forrester analysts Michael Rasmussen and Chris McClean said there is no fixed model clients are choosing. "The breadth of risk management specialties is driving change in the market," Rasmussen and McClean reported. "Client preferences vary from the one-stop-shop that can provide end-to-end risk consulting to more focused projects targeting one specific area. All of these providers are introducing new ideas and intellectual property that recommend embedding risk management into organisational processes as well as the technology infrastructure."

Protiviti, which only established a presence in Australia in 2004, was delighted with its ranking.

"Forrester's recognition of Protiviti as a leader in risk consulting services is a tribute to our entire team," said Everett Gibbs, managing director for Protiviti and chairman of the company's operating committee. "The results of Forrester's independent analysis of the global risk consulting landscape reflect our experience assisting companies worldwide with improving their risk management practices and policies, and to the strength of our deep competencies, intellectual property and proven methodologies. We are especially pleased that these are the same attributes that are valued by our clients."