The Challenge

  • Getting business and new customers is getting more and more difficult for GRC consulting firms
  • Finding governance, risk, information security, compliance and audit management professionals to work for you is going to become very difficult over the next two years due to shortage in skilled labor- you, your customers and product companies are fighting for the same talent.
  • According to heritage foundation, due to the complexity with increased regulations and intense competitive pressures, it has caused the cost of compliance for banking and financial services to go up by $20 B and that pressure is cascading down GRC consulting firms.
  • A single consultant has finite amount of consulting hours and utilization rate, hence, they can only manage fixed number of customers or projects, hence an upper limit on ROI or margin per consultant.
  • Customers have very high expectations and ROI on their consulting dollars. Trends indicate that they are replacing low value services with automation and are more willing spend on high value services
  • Repeatable and predictable revenue enables to adjust cost and increased margins vs project based revenue
  • Consulting firms today are facing ever-increasing commoditization of services. Many consulting firms struggle with differentiation, and as a result, many client organizations struggle to see the value they receive from consultants

The Solution

  • Many smaller firms dismiss the idea of having internal consulting teams simply due perceived lack of need or budget constraints –You need to create a culture innovation and create a group of internal consultants who will be your change agents and drive internal alignment. Internal consultant usually has an integrated understanding of the company, its policies, politics, and culture. Their objective is to innovate and make tools, technology, solutions and implementation recommendations.
  • Financial Services consulting firms need to be ahead of the curve and be part of the disruption- get out of manual process, reports, legacy tools and introduce automation around governance, risk and compliance services through GRC consulting platform
  • These days’ technology is very advance such Risk and compliance software build on artificial intelligence. If you implement advanced technology integrated governance, risk, information, compliance and audit platform, you can increase the bandwidth of a single consultant from managing anywhere from 1.25 to 2.5 X the number of customers. Platform can take care of the low value governance, risk and compliance tasks while the consultant can engage on high value and high margin predictive analysis

We offer the following solutions to BFS Consulting firms:

Value

  • An important advantage internal innovation consultants holds over external consultants is the ability to more easily help an organization to create an organically innovative environment for the consulting firm to scale, grow business and increase margin metrics
  • Risk and compliance consulting companies with stronger governance, risk information security and compliance transformation management intensity are more profitable- technology-based analytics and tools that can be embedded at a client, providing ongoing engagement outside the traditional project-based model
  • Technology can be your competitive differentiator- reduce costs and increase efficiency through technology, streamlined risk and regulatory compliance workflows, and alternative staffing models
  • Innovation and technology innovation can enable you to scale your GRC consulting services

A Case Study

This case study is not related to Banking and Financial Services consulting, but a good example to a well-run internal consulting team occurred when Delta and Northwest Airlines merged in 2008. American Express already had a co-brand relationship with the Delta when the announcement was made. Instead of floundering, American Express’s VP of the Delta co-brand—and former internal consultant—David Rabkin already had a game-plan formulated on how to approach the change. No, he didn’t have any contacts who had hinted about the merger. Two years before the merger, Rabkin and the internal consulting team had simply constructed a blueprint in the event that Delta merged with another airline. In essence, a successful internal consulting team was able to proactively create a plan before the problem occurred, instead of scrambling after the problem happened.

As the financial services landscape is getting more complex and changing, your client needs, buying behaviors, and expectations are also evolving, GRC consulting firm’s ability to adapt and evolve is equally essential to keep up with the rate of change to be relevant and growing.

If you would like for us to be your internal consultants and help you innovate and introduce GRC Consulting Platform to scale and increase your margins, please fill out the form.