Service Line Diversification

Percentage

Looks at how revenue is distributed across various service offerings of the consultancy. Diversifying service offerings can provide stability. If one service line experiences a downturn, others might compensate.

Formula

Revenue from a specific service line / Total revenue

Example

If a consultancy's software development service generates $400,000 out of a $1 million total, this service line accounts for 40% of the revenue.

Other Client Risk Management KPIs