2024-05-08-KPMG_Global-KPMG_ranks_1_for_providing_market-leading_capabilities_among_risk_consulting_firms_11页_944kb

Risk Management Market Perception Trends: Risk Consulting Providers 2023 Summary

This report analyzes global corporate risk management practices and the preferences for risk consulting service providers among senior decision-makers across 14 industries and nine regions (representing firms with at least $250M revenue). Insights are drawn from a 200-participant survey and focus on brand perception, selection criteria, spending drivers, and market trends.

Key Findings

1. Market Leaders:

   • The "Big 4" consulting firms (Deloitte, EY, KPMG, PwC) dominate the market with strong brand preference and high awareness. They excel due to global reach, comprehensive service offerings, long-term client relationships, and established reputations for expertise. However, concerns about conflicts of interest (due to dual roles in auditing and consulting) and pricing pressures exist.

2. Boutique Firms:

   • Boutique consulting firms (e.g., Allianz, Marsh, WTW) focus on niche expertise and industry specialization. They offer agility and specialized solutions but may require coordination with multiple providers for comprehensive risk coverage.

3. Decision-Makers and Budget Drivers:

   • Decision-makers include Chief Risk Officers, CEOs, and CFOs, who prioritize risk consulting for its ability to meet complex regulatory and operational challenges. Key drivers for increased spending include expanding into high-risk regions, new ESG/climate regulations, compliance with new industry-specific rules, and operational disruptions.

4. Spending Priorities:

   • 46% of organizations cite expansion into high-risk geographies as a key reason for increased risk management spending. New ESG/climate regulations (30%) and industry-specific rules (27%) also significantly drive demand for risk consulting services.

5. Geographic and Emerging Risks:

   • Expansion into new markets (46%) and risks from ESG/climate factors (30%) are the most significant drivers of spending. Supply chain disruptions and financial risks from interest rate changes also influence expenditure.

The report provides guidance for firms choosing risk consulting brands, highlighting the strengths and limitations of major providers while emphasizing the dynamic nature of the risk management landscape.