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The global risk management software market size is forecast to increase by USD 7.372 billion at a CAGR of 15.32% between 2022 and 2027. The growth of the market depends on several factors, including an increase in data and security breaches among enterprises, an increase in stringent government regulatory compliances, and a rise in the adoption of risk management among financial institutions. The software offers risk identification and assessment, quantitative analysis and modeling, scenario planning, risk prioritization and reporting, and risk mitigation planning. The goal is to provide a more comprehensive and efficient approach to risk management, improving decision-making and reducing the likelihood and impact of negative events.
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The market is witnessing exponential growth driven by factors such as rapid digitalization, security risks, and financial uncertainty. As businesses, especially Small and Medium-Sized Enterprises (SMEs), embrace digitization, the need for efficient risk assessment and mitigation becomes paramount. Cloud-based applications offer real-time solutions for document storage and administrative tasks, catering to organizations across various industries, including the banking and financial services sector. These platforms enable proactive pre-loss prevention strategies and streamline post-loss management activities. With the proliferation of smartphones and increasing online transactions, robust risk decision-making tools are essential to navigate the complexities of modern business landscapes.
The market research and growth report extensively covers market segmentation by Component (Software and Service), Deployment (On-Premises and Cloud), and Geography (North America, Europe, Asia, and Rest of World (ROW)). Furthermore, the market growth analysis report includes historic market data from 2017 to 2021. Futhermore, the market is propelled by various factors, such as the surge in cybercrimes and security breaches, the increasing demand for secure technology solutions, and the rise of work-from-home culture amidst the COVID-19 outbreak. Organizations are increasingly adopting integrated risk management platforms to address data-related risks, cybersecurity issues, and financial uncertainties. With the advent of innovative solutions leveraging predictive analytics, machine learning, and natural language processing, the market offers growth prospects, especially in the banking and financial services industry. However, challenges like economic uncertainties and the high cost of implementation persist, necessitating strategic decisions and effective risk mitigation activities for organizations across various sectors.
The market share growth by the software segment will be significant during the forecast period. There is an increasing demand for software that can mitigate risks and improve overall organizational performance, which is one of the key significant drivers of the market.
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The software segment was valued at USD 2.34 billion in 2017 and continued to grow until 2021. Factors such as advancements in technology, increasing data volumes, and the need for effective risk analysis and management. For instance, one of the most popular examples is quantitative risk assessment software, which leverages statistical tools and algorithms to quantify risks and establish effective mitigation strategies. Some of the wide applications of this software are across industries such as finance, healthcare, and insurance, where risk analysis is a critical aspect of their operations. The main advantage of advantages is the automation of complex and time-consuming processes. Hence such factors are expected to drive the growth of this segment which in turn will drive the growth market during the forecast period.
The increasing adoption of on-premise segments across organizations due to its benefits is expected to drive market growth during the forecast period. One of the key advantages of this on-premise segment is that it offers the organization complete control over data, ensuring that it adheres to organizational policies and security standards. Another main advantage of the on-premises segment is the ability to customize the system according to the organization's specific needs, making it a more tailored solution. Hence, such benefits are expected to drive the growth of this segment which in turn will drive the growth of the market during the forecast period.
The market is witnessing substantial growth, driven by factors like rapid digitalization and increasing adoption of cloud-based applications. Organizations across various sectors, including banking and financial services, are deploying these solutions to address legal liabilities, financial uncertainties, and security risks. With the rise in data security concerns, risk management software plays a crucial role in mitigating risks and facilitating effective decision-making. It caters to end-users ranging from small and medium-sized businesses to large enterprises, offering pre-loss prevention and post-loss management activities. As the demand for real-time risk assessment grows, the market is poised for further expansion, particularly amidst the evolving landscape of risks and uncertainties.
One of the key factors driving the market growth is an increase in data and security breaches among enterprises. There has been an increase in cyber attacks as more companies rely on big data analytics and cloud computing to gain a competitive edge. As a result, many organizations invest in tools designed to recognize and mitigate potential vulnerabilities in their IT infrastructure.
Hence, in order to address these issues, many companies are focusing on tools that provide compliance automation features, enabling them to monitor and enforce compliance more efficiently. For example, insurance companies are particularly prone to security breaches because of their reliance on sensitive personal and financial data. Thus, most of these companies are currently using advanced threat intelligence platforms to monitor their networks and detect potential threats in real time. Hence such factors are expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the rising adoption of cloud-based. There has been a rise in the adoption of cloud-based management solutions as several organizations are aware of the numerous benefits they offer over traditional on-premises solutions.
Moreover, the main benefit of cloud-based solutions is that employees can access management tools and information from anywhere, at any time, if they have an internet connection. Furthermore, cloud-based solutions enable greater collaboration between teams and departments. Hence, such benefits are expected to drive market market trends and analysis.
High cost and complexity in the installation and configuration of the software are one of the key challenges hindering market growth. There is a growing popularity of High cost and complexity in the installation and configuration of management software among enterprises as it helps to identify and mitigate potential risks and threats.
However, one of the main challenges is that such installation and configuration process of software often comes at a high cost and complexity. The need for customization of this software for each business is increasing the cost and complexity of this software. Hence, such factors can pose a significant threat to the market growth during the forecast period.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as the presence of many organizations from the banking, financial services and insurance (BFSI), IT, healthcare, and other industries are significantly contributing to the growth of the market in the region. In the US, most organizations have significant challenges while procuring software from third-party vendors.
Moreover, this region has prominent banking and financial institutions such as Wells Fargo & Co. (Wells Fargo), The PNC Financial Services Group Inc. (The PNC Financial), Bank of America, JPMorgan Chase & Co. (JPMorgan), and Citigroup Inc. (Citi), which process multiple transactions yearly. To carry out such a huge number of transactions easily and optimize the process from the back office to the front office, the bank needs advanced solutions that can automate their payment operations and give a centralized view. Thus, banking firms are adopting the software. Therefore, the increase in the adoption by various industries, such as banks, finance, and other industries, is expected to propel the growth of the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is segmented as Services such as managed service or professional service, depending on their operational requirements and administrative tasks. The choice of deployment methods, whether on-premises or cloud-based, adds flexibility to risk management strategies. The end-user industries, ranging from banking, insurance, and asset management to retail, life Sciences, and more, benefit from specialized risk management solutions. Various Types of Software address specific risk categories, including Enterprise Risk Management, Financial Risk Management, and Information Technology Risk Management, enhancing overall risk resilience. The ongoing online digitization trend, especially in Small and Medium-sized Businesses, is driving the adoption of the software, streamlining administrative, and financial tasks, document storage, sharing, and financial reporting. The proliferation of smartphones further accelerates accessibility and usage. In the banking sector, the integration of risk management software, such as integrated banking solutions, fortifies institutions against diverse risks, contributing to a robust framework.
However, there are restraints such as financial uncertainty and natural disasters that pose challenges to market expansion. To counter cyber-attacks and identity theft, companies are increasingly adopting cloud-based security solutions and leveraging technological expertise to enhance protection. Additionally, the market is fueled by technological innovations and the adoption of risk management software across various industries, including the IT industry and the insurance sector. Despite financial constraints, the market continues to grow, driven by the primary driver of increased awareness and demand for cybersecurity solutions. With various deployment types and mobile solutions available, organizations are better equipped to tackle emerging risks and ensure risk decision making is effective in the face of evolving threats.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Risk Management Software Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.32% |
Market growth 2023-2027 |
USD 7.37 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.0 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, Canada, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aravo Solutions Inc., Cura Global GRC Solutions PTE LTD., Dell Technologies Inc., Diligent Corp., Fusion Risk Management Inc., Ideagen, International Business Machines Corp., Intertek Group Plc, Kroll LLC, LogicGate Inc., LogicManager Inc., MetricStream Inc., NAVEX Global Inc., ProcessUnity Inc., Riskonnect Inc., RSM International Ltd., SAP SE, Stiftelsen Det Norske Veritas, Thomson Reuters Corp., and Wolters Kluwer NV |
Market dynamics |
Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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