Risk Analytics Market

[350 Pages Report] The global market for the risk analytics market is projected to grow from USD 59.7 billion in 2024 to USD 180.9 billion in 2029, at a CAGR of 24.8% during the forecast period. Risk analytics is important in the global market due to its ability to identify, assess, and mitigate various risks that businesses encounter. By leveraging data and analytical tools, organizations can anticipate market fluctuations, geopolitical instability, regulatory changes, and financial risks. This enables proactive decision-making, enhances operational efficiency, and protects against potential losses. In a highly interconnected global economy, understanding and managing risks across borders is essential for maintaining competitiveness and sustaining growth. Risk analytics empowers businesses to navigate uncertainties effectively, safeguard assets, and capitalize on emerging opportunities in the dynamic global marketplace..

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Market Dynamics

Driver: Growing incidences data theft and security breaches

The risk landscape is continuously evolving, and rising instances of cyberattacks have resulted in huge losses to enterprises. The growth in ransomware attacks and security breaches, such as Equifax, Spectre, Meltdown, cloud malware injection attacks, account or service hijacking, and man-in-the-cloud attacks, are making organizations focus more on data security to safeguard themselves from losing millions of records and sensitive information. According to the Herjavec Group’s Cyber Crime report 2019, damage from ransomware would cost USD 11.5 billion to organizations in 2019. Hence, to safeguard themselves from growing security breaches, organizations are looking forward to shifting from traditional security to advanced security to protect their critical assets from potential threats.

Organizations in various countries focus on the implementation of data protection directives to safeguard individuals’ data. The increasing advanced cyberattacks and the growing number of ransomware attacks on banks and various other financial service enterprises have encouraged governments across regions to adopt a more robust and effective security model to maintain the information security of business-critical assets. The rise in the number of cross-border transactions and data transfers is encouraging the need for developing data protection, and information security laws and regulations promoting the adoption of risk analytics solutions among enterprises that have global footprints. The growing rate of cybercrimes has encouraged various verticals to implement stringent regulations for data security and constantly monitor their networks for threats

Restraint: Resistance to Change

Resistance to change represents a significant barrier for businesses seeking to implement new risk management practices or technologies. This resistance often stems from ingrained organizational cultures, employee apprehension about unfamiliar processes, or concerns about job security. Despite recognizing the benefits of modern risk management approaches, such as advanced analytics or automation, employees may resist adoption due to fear of the unknown or perceived disruption to existing workflows. Moreover, middle management resistance can impede progress, as these individuals may be comfortable with established routines and hesitant to embrace change that could challenge their authority or status quo. Overcoming resistance to change requires effective communication, stakeholder engagement, and change management strategies. Leaders must articulate the rationale behind proposed changes, address employee concerns, and provide training and support to facilitate the transition. By fostering a culture of openness, collaboration, and continuous improvement, organizations can mitigate resistance to change and drive successful adoption of innovative risk management practices

Opportunity: Adoption of AI and blockchain technology in the market

AI and blockchain are among the recent trending technologies that are expected to add advanced capabilities to risk analytics solutions and open new growth avenues. The integration of these technologies with risk analytics solutions would address some of the key challenges and pain points faced by the end-user industry over the past few decades. The advanced technologies facilitate faster transactions and settlements, which helps financial institutions and customers conduct transactions more easily while eliminating the intermediary charging fee.

As businesses gather data from various channels, safeguarding that information becomes paramount. Blockchain technology offers a promising avenue for security analysts to expedite the detection of data breaches and mitigate the risk of data loss. By leveraging Artificial Intelligence (AI) and Machine Learning (ML), which operate with pre-defined algorithms, companies can enhance their understanding of threat classification. These advanced technologies enable rapid analysis of system anomalies, identifying potential threats efficiently. This approach facilitates proactive detection and response to security risks, ensuring a more resilient and secure operational environment.

Challenge: Scarcity of highly skilled professionals in the field of risk management

In an increasingly complex and uncertain business landscape, effective risk management is essential for safeguarding assets, ensuring compliance, and sustaining long-term growth. However, the shortage of skilled professionals poses challenges for organizations seeking to build robust risk management frameworks. This scarcity result in gaps in expertise, leading to inadequate risk assessment, mitigation, and response strategies. Consequently, businesses may face heightened exposure to financial, operational, and reputational risks. This shortage also presents opportunities for strategic investment and talent development. Businesses can attract and retain top talent by offering competitive compensation packages, professional development opportunities, and a supportive work culture. Additionally, organizations can collaborate with educational institutions and industry associations to cultivate a pipeline of skilled risk management professionals through internships, mentorship programs, and specialized training initiatives. By addressing the scarcity of highly skilled professionals in risk management proactively, businesses can enhance their resilience, competitive advantage, and long-term sustainability. Moreover, investing in talent development can foster a culture of risk awareness and proactive risk management throughout the organization, driving innovation and value creation..

Risk analytics Market Ecosystem

The risk analytics ecosystem is a dynamic and interconnected network of entities that collectively enable seamless communication between machines and devices through satellite networks. This ecosystem encompasses a diverse range of players, each contributing specialized services and solutions to facilitate efficient and global connectivity. The ecosystem of the risk analytics include software/services providers, end users, and regulatory bodies.

By vertical, BFSI segment accounts for the largest market size during the forecast period.

The BFSI (Banking, Financial Services, and Insurance) sector dominates the risk analytics market primarily due to its inherent complexity and exposure to various risks. Within this sector, institutions face multifaceted challenges ranging from credit and market risks to operational and compliance risks. As a result, there is a critical need for advanced risk analytics solutions to assess, monitor, and mitigate these risks effectively. BFSI firms heavily rely on risk analytics to enhance decision-making processes, optimize capital allocation, and ensure regulatory compliance. The increasing volume and diversity of financial transactions, coupled with stringent regulatory requirements, further drive the demand for sophisticated risk analytics tools and techniques. Additionally, the high stakes involved in financial transactions necessitate proactive risk management strategies, making risk analytics indispensable for maintaining stability and competitiveness in the industry. Thus, BFSI's significant market size in the risk analytics market reflects its pivotal role in driving innovation and adoption of advanced analytics technologies to navigate the complex landscape of financial risks.

By Risk Stages, Risk Assessment and Prioritization segment is projected to grow at the highest CAGR during the forecast period.

Risk assessment and prioritization are critical components of effective risk management, enabling organizations to systematically identify, evaluate, and address potential risks. Firstly, the identification stage involves recognizing hazards, vulnerabilities, and threats that could adversely affect objectives or operations. Secondly, evaluation entails assessing the likelihood and potential impact of identified risks, enabling organizations to rank them based on severity and potential consequences. Prioritization is essential for focusing resources on managing the most significant risks first, optimizing resource allocation and enhancing overall risk management efficiency. This process supports decision-making by providing insights into risk severity and informing mitigation strategies or risk acceptance decisions. Regular review and updating of risk assessments facilitate continuous improvement, ensuring that risk management practices remain relevant and effective in the face of evolving circumstances.

North America to account for the largest market size during the forecast period.

Key Market Players

The major risk analytics solution and service providers include IBM (US), SAS Institute (US), Oracle (US), FIS(US), Moody’s Analytics (US), ProcessUnity(US), ServiceNow (US), MarshMeclennan(US), Aon (UK), MetricStream (US), Resolver (Canada), SAP (Germany), Milliman(US), LogicManager(US), Provenir(US), SAI360(US), Deloitte(UK), OneTrust(US), Diligent(US), Alteryx(US), Crisil(India), Archer(US), ZestyAI(US), Fusion Risk Management(US), RiskVille(Ireland), Spin Analytics(UK), Kyvos Insights(US), Imperva(US), Cirium(UK), Quantexa(UK), ClickUp(US), Sprinto(US), Ventiv(US), Adenza(US), Centrl.AI(Canada), SafetyCulture(Australia), Quantifi(US), CubeLogic(UK), Onspring(US), Riskoptics(US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the risk analytics market.

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Scope of the Report

This research report categorizes the risk analytics market based on Offerings, Risk Type, Risk Stages, Verticals, and Region.

Offering:

• Software
  • By type
    • ETL Tools
    • Risk Calculation Engines
    • Scorecard and Visualization Tools
    • Risk Reporting Tools
    • Dashboard Analytics
    • GRC Software
    • Others (Portfolio Management, Operation Risk Management))
  • By Deployment Mode
    • Cloud
    • On-Premises
• Services
  • Professional Services
    • Consulting services
    • Deployment & Integration
    • System & Maintenance
  • Managed Services

By Risk Stages:

• Risk identification
• Risk assessment and prioritization
• Risk response and mitigation
• Risk monitoring
• Risk reporting.

By Risk Type:

• Strategic risk
  • Operational Risk
  • Reputational Risk
  • Governance Risk
  • Political Risk
  • Financial Risk
• Regulatory risk
• Environmental risk
• other (economic risk and change risk )

By Verticals:

• BFSI
• Retail and Ecommerce
• Healthcare and Life sciences
• Telecommunications
• Energy and utilities
• Manufacturing
• Transporatation and Logistics
• Government and Defense
• Mining
• Construction
• Others

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • ANZ
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • Kingdom of Saudi Arabia
  • Qatar
  • Israel
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments:

• In March 2024, Orcale announced Oracle Risk Management Cloud in Release 24B. It offers comprehensive solution designed to help organizations identify, assess, and mitigate risks across their business operations. It offers advanced analytics, automation, and collaboration tools to streamline risk management.
• In March 2024, FIS Global announces card fraud detection capabilities leveraging artificial intelligence (AI) with aim to bolster FIS's ability to identify and prevent fraudulent transactions, providing greater security for cardholders and financial institutions alike.
• In March 2024, Aon acquired an AI-powered platform to assist fleet and mobility clients in making data-driven decisions, enhancing operational efficiency and risk management. The platform utilizes artificial intelligence to analyze data and provide insights, enabling clients to optimize their fleet operations and improve decision-making processes.
• In March 2024, Crisp joined Resolver, with the aim to enhance Resolver's risk intelligence capabilities by integrating Crisp's expertise and technology into its platform, offering clients improved risk assessment and mitigation tools.
• In February 2024, SAS partnered with Carahsoft to bring analytics, AI, and data management solutions to the public sector. The aim is to leverage SAS's expertise in advanced analytics and Carahsoft's extensive government market reach to offer tailored solutions that enable public sector organizations to harness the power of data for informed decision-making and improved outcomes.

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