UPDATE 2-RiskMetrics profit beats market view; shares rise

(Adds details, CEO comments, share movement)

By Ratul Ray Chaudhuri

BANGALORE, May 8 (Reuters) - RiskMetrics Group Inc (RMG.N: Quote, Profile, Research), which advises companies on how to navigate risk, reported first-quarter earnings above market expectations, as revenue grew at its risk and proxy advisory segments, sending its shares up 10 percent.

The company also said revenue for the full year is expected to be in the upper half of its previous outlook range, with a renewal rate of 89 percent to 91 percent. "Risk is a hot topic these days. I think there is an increased focus on it since more and more institutions of all types are trying to find more transparency into the risk to their portfolio," Chief Executive Ethan Berman told Reuters.

RiskMetrics advises companies on market, credit, portfolio, governance, accounting, legal and environmental risks. The firm also offers corporate governance advice to large investors through Institutional Shareholder Services (ISS), which it acquired early last year.

There is demand in corporate governance advice as companies, certainly in the financial sector, have had some breakdowns in governance, Berman said.

Research on non-US companies is also in demand as with the weak dollar, more and more U.S. investors are parking abroad.

"We had faster growth internationally than we did domestically. The U.S. market is probably ahead of global markets in terms of governance," he said.

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