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Risk Management Market Size - By Component (Solution, Services), By Deployment Model (Cloud, On-premises), By Organization Size (SME, Large Organization), By End User & Forecast, 2024 – 2032

  • Report ID: GMI9857
  • Published Date: Jun 2024
  • Report Format: PDF

Risk Management Market Size

Risk Management Market size was valued at USD 13.6 billion in 2023 and is estimated to register a CAGR of over 14% between 2024 and 2032. The market growth is driven by the rising incidents of cyber threats, stringent regulatory compliance, rapid digital transformation, globalization, technological advancement, data-driven decision-making, and economic volatility. The rise in data and security breaches among businesses is one of the major drivers of the expansion of the market.
 

Risk Management Market

For instance, in May 2024, Resilience announced new tools for continuous monitoring and prioritization of cyber risk mitigation. These tools are designed to integrate seamlessly with existing systems, providing real-time insights to help enterprises defend against evolving cyber threats. Integrating cutting-edge technologies can help organizations enhance their efficiency, operations, and security. For instance, in May 2024, Rockwell Automation, in collaboration with partners, such as Cisco, Microsoft, and NVIDIA, presented advancements in AI, 5G, and cybersecurity at the Hannover Messe trade fair.

The gig economy introduces a wide array of risks that traditional risk management frameworks do not adequately address. These risks include regulatory compliance, worker safety, data security, reputational damage, and supply chain disruptions. As companies increasingly rely on gig workers and platforms, there is a growing need for specialized risk management solutions tailored to the unique challenges of this decentralized and dynamic workforce model. By understanding the unique risks associated with the gig economy and implementing proactive risk management strategies, companies can effectively mitigate risks, enhance business resilience, and capitalize on the opportunities presented by this emerging workforce model.
 

The risk management market faces numerous challenges that can hinder its growth. Obtaining accurate data is crucial for effective risk management, but it can be challenging due to issues such as data silos, inconsistency, and insufficient coverage. Navigating the complex and evolving regulatory landscape requires continuous adaptation, and integrating new solutions with existing systems can be difficult, especially with legacy technologies. A shortage of skilled professionals in key areas, such as cybersecurity and data analysis, exacerbates these issues, as does organizational resistance to change and the high costs of implementation, which can be prohibitive for Small & Medium Enterprises (SMEs).

 

Risk Management Market Trends

The risk management industry is being shaped by several key trends. Organizations are moving toward a more holistic approach to ERM, which involves integrating risk management into strategic decision-making processes, the incorporation of AI for enhanced governance & compliance, and a heightened focus on data privacy due to evolving global regulations. For instance, in June 2024, USI Insurance Services introduced the PATH platform, which leverages advanced analytics and continuous monitoring to proactively manage cyber risks, reflecting the industry's shift toward more integrated and technology-driven risk management solutions.
 

Blockchain technology is increasingly being used to improve transparency and security in risk management processes. The adoption of Regulatory Technology (RegTech) solutions is on the rise to help organizations comply with complex standards efficiently. Cloud-based risk management solutions are gaining popularity due to their scalability, flexibility, and cost-effectiveness. Shifting from reactive to proactive risk management is a significant trend. Organizations are focused on identifying potential risks before they materialize and implementing measures to mitigate them in advance.
 

Risk Management Market Analysis

Risk Management Market Size, By Component, 2022 – 2032, (USD Billion)

Based on component, the market is divided into solutions and services. The solutions segment accounted for a market share of over 48% in 2023. The increasing complexity and interconnectedness of risks necessitate solutions to maintain operational continuity in the face of disruptions, fostering the adoption of business continuity and resilience technologies. Leveraging data analytics and predictive modeling, organizations gain deeper insights into emerging risks and trends, facilitating proactive risk mitigation. Organizations efficiently protect their digital assets by using innovative technologies and comprehensive software.
 

For instance, in March 2024, Crédit Agricole CIB partnered with Opensee to enhance its market risk management capabilities, highlighting the sector's proactive approach to managing financial risks through advanced technological solutions.
 

Risk Management Revenue Market Share, By Deployment, 2023

Based on deployment mode, the risk management market is categorized into on-premises and cloud. The cloud segment is expected to hold over USD 28 billion by 2032. Cloud-based solutions are gaining popularity in the market as they offer scalable, flexible, and cost-effective options that enable real-time data access and analysis. These platforms enhance collaboration across teams, provide advanced security measures, and ensure seamless integration with other systems. Organizations benefit from automatic updates and maintenance, reducing IT burdens.
 

For instance, in May 2024, AuditBoard introduced advanced IT risk management solutions that provide robust capabilities for identifying threats, quantifying risks, and enhancing cyber resilience. This reflects a broader trend where businesses are increasingly relying on cloud-based platforms to ensure comprehensive risk management and compliance.
 

North America Risk Management Market Size, 2022 -2032, (USD Billion)

North America dominated the risk management market over 34% share in 2023. Multiple multinational corporations spanning various sectors, each facing complex and evolving risks in their operations, have contributed to the growth of the risk management industry. The region's strong emphasis on corporate governance, compliance, and accountability further fuels the adoption of risk management solutions. North America, particularly the U.S. and Canada, has a stringent regulatory environment. This regulatory complexity drives the demand for risk management solutions in the region.
 

For instance, in May 2024, Cisco and Deloitte formed a strategic alliance to develop integrated risk management solutions, combining Cisco’s cybersecurity technologies with Deloitte’s risk advisory services. The partnership focuses on providing comprehensive risk management frameworks for digital transformation, particularly in sectors such as healthcare, finance, and manufacturing.
 

In Europe’s key countries, such as France, the UK, and Germany, the risk management market is witnessing significant growth, propelled by increased regulatory compliance, the rapid advancement in technology to counter cybersecurity, and the focus on economic stability. Also, factors including the growing adoption of cloud-based risk management solutions and the rising demand from SMEs are boosting market expansion.
 

In the Asia Pacific region, the risk management market is experiencing growth due to rapid digital transformation, economic growth, increasing awareness & adoption of risk management practices in response to growing cyber threats, and regulatory changes. Countries including China, India, and Japan are adopting advanced technologies, such as Al, ML, and blockchain, to strengthen their risk management capabilities.

 

Also, the rise of the gig economy in the region has introduced the market to new types of risks, changing the business environment from reactive to proactive. For instance, in May 2024, Infosys launched a new analytics-driven risk management solution tailored for the banking & financial sector. It is designed to provide real-time risk analysis and mitigate threats.
 

Risk Management Market Share

IBM Corporation and Microsoft Corporation dominate the market over 10% market share. IBM Corporation stands out as a prominent player in the risk management industry due to its comprehensive suite of solutions. It offers a range of risk management products including the IBM OpenPages with Watson, which provides a powerful platform for Governance, Risk, and Compliance (GRC).
 

Microsoft is also a significant player in the risk management market, leveraging its comprehensive suite of technologies and solutions to help organizations manage risks effectively. Its focus on cybersecurity, compliance, and data privacy, along with its industry-specific offerings and strategic partnerships, position it as a key player in the market. Microsoft continuously invests in R&D and innovation in the risk management space. Microsoft collaborates with companies including Rockwell Automation, Cisco, and Deloitte, combining its technological strengths with industry-specific expertise.
 

Risk Management Market Companies

Major players operating in the risk management industry are:

  • AxiomSL
  • Fidelity National Information Services Inc
  • Gurucul
  • IBM Corporation
  • Microsoft Corporation
  • Misys
  • Moody's Analytics, Inc
  • Oracle Corporation
  • Provenir
  • Risk Edge Solutions
  • SAP
  • SAS Institute Inc
  • Verisk Analytics, Inc
     

Risk Management Market News

  • In June 2024, IBM launched a new quantum-enhanced risk analysis tool designed to leverage quantum computing capabilities for complex risk modeling and simulation. This tool aims to improve financial institutions' ability to analyze and manage risks in areas such as portfolio optimization and credit risk assessment.
     
  • In May 2024, Oracle announced enhancements to its Oracle Risk Management Cloud, focusing on improved integration with Oracle’s ERP systems and advanced AI analytics for real-time risk assessment. Features, such as predictive analytics for financial risk, enhanced compliance tracking, and automated risk reporting, are included in the platform.
     

The risk management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Component

  • Solution
    • Financial risk management
    • Compliance risk management
    • Cybersecurity risk management
      • Vulnerability management
      • Threat detection & response
      • Security information & event management
      • Others
    • Enterprise risk management
    • Operational risk management
    • Others
  • Services
    • Professional services
    • Managed services

Market, By Deployment Model

  • On-premises
  • Cloud

Market, By Organization Size

  • SMEs
  • Large organizations

Market, By End User

  • BFSI
  • IT & telecom
  • Healthcare & life science
  • Government, defense, and aerospace
  • Retail & consumer goods
  • Manufacturing
  • Energy & utilities
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia
    • Rest of MEA

 

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of risk management reached USD 13.6 billion in 2023 and is set to witness over 14% CAGR between 2024 and 2032, led by the rising incidents of cyber threats, stringent regulatory compliance, and rapid digital transformation.

The cloud segment in the risk management industry is expected to generate over USD 28 billion by 2032, as they offer scalable, flexible, and cost-effective options that enable real-time data access and analysis.

North America market accounted for 34% share in 2023, attributed to the strong emphasis on corporate governance, compliance, and accountability.

AxiomSL, Fidelity National Information Services Inc, Gurucul, IBM Corporation, Microsoft Corporation, Misys, Moody's Analytics, Inc, Oracle Corporation, Provenir, Risk Edge Solutions, SAP, SAS Institute Inc, and Verisk Analytics, Inc

Risk Management Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 360
  • Countries covered: 21
  • Pages: 240
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