Fuente: http://www.consultant-news.com  Fecha:  29.06.2009

Risks are higher in the downturn, and consultancies have to work harder to manage them, says MCA

A new report by the MCA, From Risk to Reward: Managing Risk in Consulting Relationships, sponsored by risk management specialists Lockton, also reports a large shift in the nature of these risks, with consultants most concerned about lack of client engagement and clarity around objectives. Project budgeting and the ability of clients to pay were identified as significant risks.

One result of these changes is greater transferring and sharing of risks with management consultants.

From Risk to Reward, based on surveys and interviews with senior consultants whose firms work with over 90 of the FTSE 100 companies, found that 61% of consultants believe that their clients are transferring more risk to their firm than two years ago. Consultants are aware of the pressures their clients are facing and are responding positively to help them through the difficult times.

76% of clients are now transferring project risks to their consultants, and 38% are transferring budget management risks. Two thirds of consultancy firms now have fee arrangements which are partially linked to performance. A further 8% are entirely based on performance.

Alan Leaman, Chief Executive of the Management Consultancies Association said: “Although both consultants and clients are more conscious of risk in the current climate, it is interesting that we are now seeing more examples of risk sharing. This suggests that the consulting industry is responding well to the current economic pressures.”

Emily Freeman, Executive Director – Technology Risks, Lockton International commented: “In order to manage risk at both the vendor and client end, you need a multi-functional risk team, which includes people from the business, procurement, IT, finance and lawyers. This requires an organisation to overcome silo management and create an ongoing and empowered team.”