Global Regulatory & Compliance Management Consulting Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

Global Regulatory & Compliance Management Consulting Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

Regulatory and compliance management consulting services help businesses identify and address legal and regulatory compliance requirements and implement compliance management processes for effective oversight. Consultants advise senior management and help develop processes and plans to ensure the organization stays abreast of new regulations and potential risks. This may involve reviewing and updating policies and procedures, conducting risk assessments, and providing training to staff. Applications for regulatory and compliance management consulting include financial institutions, energy, insurance, healthcare, and other entities that must comply with regulations.

Market Overview:

The latest research study on the global Regulatory & Compliance Management Consulting market finds that the global Regulatory & Compliance Management Consulting market reached a value of USD 9530.01 million in 2023. It’s expected that the market will achieve USD 15476.5 million by 2029, exhibiting a CAGR of 8.42% during the forecast period.

Basel

Basel III is a series of financial reform measures formulated by the Basel Committee on Banking Supervision (BCBS), aiming to strengthen the supervision, supervision and risk management of the banking industry. The Basel III framework focuses on the standardization of credit risk, credit valuation adjustment risk, and operational risk methods. Basel IV is the informal name for a series of proposed banking reforms based on international banking protocols known as Basel I, Basel II, and Basel III. Also known as Basel 3.1, it comes into effect on January 1, 2023 (depending on the jurisdiction). Basel IV will bring significant changes to the way banks calculate risk-weighted assets (RWA). Basel IV limits the use of internal models in favor of a revised standardized approach (SA) to restore credibility to banks' risk calculations - weighted assets (RWA) and capital ratios. Specifically, the overall model RWA will be permanently set at 72.5% of the lowest value of the RWA calculated under the revised SA, subject to a five-year phase-in period.

Faced with the Basel Accords, banks and other financial institutions will need to implement more supervision and legislation, especially large, systemically important institutions. It will be necessary for banks to provide more granular data more frequently and undergo more rigorous stress testing. Financial services must comply with complex and dynamic reporting and disclosure requirements, which increases fines, reputational damage, and compliance risks. Since the Basel Accord is not a binding law but a set of minimum standards, each country can adapt it to its circumstances. This increases the complexity and uncertainty of cross-border transactions, as well as the risk of regulatory arbitrage and non-compliance. Risks related to environmental, social, and governance factors are increasingly a focus for regulators. The positive impact is that Basel provides financial services with the opportunity to improve risk management. Banks must now increase their ability to absorb losses from damaged assets or other unexpected shocks. For some institutions, raising additional funds may become necessary or even mandatory. Management will need to reassess current business models and strategies to ensure compliance with the new rules while maintaining a healthy balance sheet structure. By adopting a more comprehensive and integrated risk assessment and mitigation approach, treasury services can optimize capital and liquidity allocation and diversify funding sources. Basel also encourages finance departments to adopt more robust and transparent governance frameworks, helping to make better decisions both within and outside banking organizations. By providing high-quality, reliable, and tailored treasury services that meet or exceed customer expectations, banks can build long-term, mutually beneficial relationships with their customers. They can also use customer feedback and data to improve products, processes, and systems and identify new opportunities and markets. Overall, the finalization of Basel will significantly reduce the severity of the recession and the likelihood of a permanent banking crisis in the future. These medium- and long-term benefits are considered to outweigh the modest short-term transition costs of the reform. Basel's rules are complex and often require significant changes to any given bank's operations. These include changes to accounting practices, capital adequacy requirements, risk management strategies, incentive systems, etc. Since most agencies have limited resources available for compliance programs, this means deciding which areas need to be prioritized first to meet deadlines and comply with regulatory requirements. Against this backdrop, banks need to ensure they recruit and retain key regulatory and compliance talent. This has stimulated a specific demand for professionals with experience in the Basel Accord, regulatory risk, model validation, and risk methodologies. Therefore, the implementation of the Basel Accord has boosted the demand for regulatory and compliance management consulting services.

AI & Machine Learning

Emerging technologies such as artificial intelligence and machine learning, blockchain, and robotic process automation offer huge potential for transformation in operational and regulatory productivity. Regulators are also creating an environment that encourages companies to use these technologies. Artificial intelligence is the ability of machines to imitate human intelligence to help solve problems, reduce error rates, or increase processing speed. Artificial intelligence encompasses a range of technologies and technologies, including machine learning, natural language processing (NLP), robotics, and more. Machine learning mainly involves developing algorithms that enable computers to learn and make decisions or predictions based on data.

As cloud computing and the Internet of Things become highly prevalent in various industries, the amount of data generated by each endpoint has increased significantly. Traditional analytical methods are increasingly unable to handle growing data volumes. Cognitive capabilities, including machine learning, data mining, and natural language processing, are replacing traditional analytics and being used on massive data sets to help find indicators of known and unknown risks. Machine learning can simplify regulatory reporting by identifying complex patterns and correlations that human analysts can easily miss, transforming complex compliance data into intuitive and actionable trend analysis. It is therefore a powerful tool for predicting and understanding market behavior. Businesses must operate in and comply with an ever-changing regulatory environment. AI systems can be programmed to continuously scan and monitor regulatory databases, financial news media, and official announcements for any regulatory updates or revisions. Once detected, these changes can be quickly propagated to relevant departments and even integrated into compliance systems in real time. The high volume of transactions and pressure to maintain compliance means even minor errors can develop into serious problems. Such errors are often the result of natural human weaknesses such as fatigue, cognitive biases, or brief lapses in concentration. AI systems operate without human limitations or biases. Increased accuracy and speed can make compliance activities smoother, minimizing the risk of regulatory violations and associated penalties. Artificial intelligence, specifically machine learning, can automate workflows. This means less time and human capital is required to support compliance operations. In the banking industry, for example, large amounts of legitimate and fraudulent transaction data can be used to train machine learning algorithms to help them spot differences. Machine learning algorithms can also be trained to assess banking networks for possible regulatory vulnerabilities, while AI tools can recommend remediation steps. Therefore, to help organizations meet these requirements, regulatory and compliance management consulting service providers have started offering artificial intelligence and machine learning-driven solutions to help businesses meet various regulatory and compliance requirements. AI-driven solutions and platforms integrated with analytics tools help businesses extract insights from large amounts of data to help them make informed decisions.

Region Overview:

In 2022, the share of the Regulatory & Compliance Management Consulting market in North America stood at 40.31%.

Company Overview:

The major players operating in the Regulatory & Compliance Management Consulting market include EY, Deloitte, Pwc, KPMG, BCG, etc. Among which, EY ranked top in terms of sales and revenue in 2023.

EY serves clients offers advisory, assurance, tax, and transaction advisory services, and its industry specializations include consumer products; financial services (asset management, banking and capital markets, private equity, and insurance); real estate (construction and hospitality and leisure); life sciences (biotechnology, medical technology, and pharmaceutical); media and entertainment; mining and metals; technology; automotive; telecommunications; oil and gas; power and utilities; cleantech; government and public sector; provider care; retail and wholesale; and support of entrepreneurial businesses.

Segmentation Overview:

By type, Compliance Management Consulting segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Financial Services segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Regulatory & Compliance Management Consulting market covered in Chapter 3:

CRISIL LIMITED
Advisense (FCG)
Baringa
BCG
RQM+ (Maetrics)
Mercadien Group
Aon
EY
Oliver Wyman
IBM
PA Consulting
Deloitte
Accenture
Pwc
Protiviti
McKinsey & Company
Implement Consulting Group
KPMG

In Chapter 4 and Chapter 14.2, on the basis of types, the Regulatory & Compliance Management Consulting market from 2019 to 2030 is primarily split into:

Regulatory Management Consulting
Compliance Management Consulting

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Regulatory & Compliance Management Consulting market from 2019 to 2030 covers:

Energy
Pharmaceuticals
Public Sector
Technology, Media and Telecommunications (TMT)
Financial Services
Consumer
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2019-2030) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)