Demand for risk managers is expected to grow by up to 40 per cent annually in India

Updated on: Monday, September 03, 2012

The demand for risk managers is expected to grow by up to 40 per cent annually in India as companies are focusing on risk management services to ensure they are guarded from all kinds of risks, especially on the back of current economic scenario, experts said.

"The demand for risk managers has picked up in the last 3-4 years. It was due to turbulent economic scenario along with volatile markets. Firms are focusing on risk management services and are hiring risk mitigation professionals for ensuring smooth running of business," Hill & Associates (India) Country Manager Shalini Chakravorty told.

According to 2011 data by the Institute of Internal Auditors, the Risk Consultancy market is approximately USD 30 billion (Rs 1.6 lakh crore) globally, while in the Indian market, it is estimated around Rs 1,500-1,800 crore, she said.

"In India, the data reflects that the volume of risk managers has taken a leap of almost three-fold over the last two years. Banking and financial services sector, telecom and lately real estate firms are looking into investing seriously on risk managers, boosting the demand for such professionals by at least 30-40 per cent annually," she added.

Sectors like oil and gas, extractive industry like mining, IT and ITeS, telecom and foreign banks have seen tremendous growth in hiring risk managers, she said, adding that in retail sector this is a recent phenomenon.

This demand for risk managers is basically due to foreign direct investment, imposition of regulatory laws like the UK Bribery Act, geographical complexity and laws of the land.

Echoing the view, GlobalHunt Director Sunil Goel said the demand for the risk manager is growing every year 25-30 per cent and every industry and organisation are setting up separate teams to manage operational to business risk
strategies for the companies.

"This is expected to grow 20-25 per cent every year. Earlier, only large companies used to have department specialists. Now, even mid-sized companies have started looking at hiring competent risk managers," he further said.

In the sectors like financial services, manufacturing & production, power & energy and health care the demand for risk manager is usually high.

However, mid-size companies and SMEs, which did not hire risk managers earlier, have started recruiting risk managers recently, he added.

Risk Manager's profile includes evaluating the risk in terms of company's business and financial strategy, manpower strategy, operational strategies, CSR policies and to devise plans to handle some unforeseen risk that could arise out of the companies' present decisions, he said.

Meanwhile, Career Builder India Managing Director Premlesh Machama said the demand of risk managers at infrastructure firms grew by 63 per cent since last two years.

"With three lines of defence towards risk management, the companies are pulling all stops to ensure that the company is guarded from all kinds of risk. Since risk professionals play a key role, they have been put on an equal stature as business developers," he pointed out.

Other corporates, including major players in the banking and financial services sector, telecom and lately real estate firms are looking into investing seriously on risk managers, increasing the demand for such professionals by at least 30-40 per cent, he added.

Demand for risk managers is expected to grow by up to 40 per cent annually in India

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