Demand for risk managers to grow by 40% due to economic turmoil: Experts

MUMBAI: 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 reporters.

According to 2011 data by the Institute of Internal Auditors, the Risk Consultancy market is approximately $ 30 billion (Rs 1.6 lakh crore) globally, while in the Indian market, it is estimated around 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 has 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.