Following growth of 7% to US$62bn in 2017, a new report today estimates that growth in the global risk services market will accelerate to more than 10% in 2019, with the value of the market passing US$80bn by 2020. This will be an uplift of almost US$30bn (over 50% growth) in just five years.

The report also revealed that more than half of the entire risk services market is based in the US thanks largely to the size of its economy, the maturity of its professional services market, and a business culture that encourages the seeking of external advice.

These figures are published in a new report from Source Global Research, the leading research and strategy firm for the global management consulting industry. In the report, Source also points out that when two additional components of the risk market are factored in (additional revenue generated by future competitors offering new solutions and services, and risk-related work that organisations currently do internally), the addressable risk services market reaches a size of US$188bn—roughly three times the total revenue generated by risk services providers globally today.

Cybersecurity was both the biggest and fastest-growing service line, and the resulting attractiveness of this service line is leading to an influx of technology-focused new entrants.

Callum Jack, Senior Analyst at Source Global Research, said:

“There is huge potential in the risk services market beyond the revenues achieved already, and the outlook is very positive for firms that can convince clients that their services complement—or are better than—clients’ internal capabilities.

Technology expertise will be central to winning work in risk services in the future with cyber risk continuing to grow and evolve in parallel with digitisation. For this reason, digital know-how will play an increasingly important role in the delivery of both low-cost and high-value services.”


Ed Marsden, Risk Advisory Clients and Industries Leader at Deloitte, added:

“Cyber is front of mind and on the front of the newspapers, and that's only going to increase. As companies migrate large portions of their legacy IT estate to the cloud; develop increasingly complex ecosystems; and innovate with AI, blockchain and robotics, there's a need for even greater vigilance.”


In addition, the Source report found that risk transformation and third-party assurance also saw strong growth. The risk transformation service line has benefited from an increase in investment by clients seeking to bolster their internal risk capabilities and ensure that the risk management function is positioned effectively within their organisations. Growth in third-party assurance work has come about as a result of the growing importance clients are being forced to place on provenance and ethical practices. Both of these service lines are expected to continue to grow strongly to the end of 2019.

Although all sectors are experiencing increasing levels of demand for risk services, the report found that the financial services sector remains by far the biggest market, thanks to the wave of regulation that has hit the sector globally—in particular since the financial crisis—coupled with the attractiveness of the sector to cybercriminals. However, other heavily regulated markets, namely pharma and healthcare, are outpacing financial services in terms of growth, although both are much smaller markets.

Dennis Chesley, PwC Global Risk and Regulatory Consulting Leader, added:

“The health industry shows the greatest promise in terms of shifting its thinking to see risk management as including a view on opportunity, and this will help to build a more resilient health industry.”


For more information on Source reports contact ella-sian.jolley@sourceglobalresearch.com, telephone +44 (0)20 3478 1207, or visit www.sourceglobalresearch.com.

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