Enterprise Risk Management Global Market Report 2024

The enterprise risk management market size has grown steadily in recent years. It will grow from $4.89 billion in 2023 to $5.12 billion in 2024 at a compound annual growth rate (CAGR) of 4.7%. The growth observed in the historical period can be attributed to factors such as regulatory compliance requirements, cybersecurity threats, business continuity planning, data analytics and insights, and disruptions in the supply chain.

The enterprise risk management market size is expected to see strong growth in the next few years. It will grow to $6.59 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The anticipated growth in the forecast period can be attributed to the emergence of new risks, preparedness for pandemics, changes and increasing complexity in regulations, and the focus on crisis management and response. Major trends expected in the forecast period include integration with emerging technologies, cybersecurity risk management, incorporation of artificial intelligence (AI) and machine learning (ML), addressing climate change and ESG (Environmental, Social, Governance) risks, and enhanced third-party risk management (TPRM).

The growth in data security breaches within enterprises is propelling the enterprise risk management market. A data breach occurs when information is accessed from a system without the owner's knowledge or consent. The increasing incidents of data security breaches can be attributed to factors such as weak and stolen credentials, application vulnerabilities, malware, malicious insiders, insider errors, and others. Enterprise risk management plays a crucial role in identifying, assessing, and preparing for potential losses that may arise due to data security breaches. As an illustration, in 2021, according to the Identity Theft Resource Center (ITRC), a nationally recognized nonprofit organization dedicated to supporting victims of identity crime, data breaches exceeded the total number recorded in 2020 by 17%. Consequently, the upward trend in data security breaches is expected to drive the growth of the enterprise risk management market.

The growth of the enterprise risk management market is being propelled by the escalating cybersecurity threats. These threats encompass a spectrum of malicious activities aimed at compromising the security of digital information, systems, and networks. Enterprise risk management plays a crucial role by integrating cybersecurity into risk management practices, thereby enhancing resilience, protecting assets, and sustaining stakeholder trust in the face of mounting cyber threats. As an illustration, in April 2023, according to GOV.UK, a UK-based public sector information website, fewer than four in ten businesses and a third of charities reported being insured against cybersecurity risks. This figure rose to 63% for medium-sized businesses and 55% for large businesses. Consequently, the increasing cybersecurity threats contribute to the growth of the enterprise risk management market.

A notable trend gaining traction in the enterprise risk management market is the prevalence of strategic partnerships. Companies within the enterprise risk management sector are increasingly forming strategic alliances to capitalize on each other's resources and to facilitate expansion into new markets. For example, in August 2021, Galvanize, a US-based software as a service company specializing in security, risk management, compliance, and audit software for the governance, risk management, and compliance (GRC) market, entered into a partnership with Turnkey. Through this collaboration, Turnkey, a London-based provider of Integrated Risk Management (IRM), Identity Access Management (IAM), and cyber and application security, will incorporate Galvanize's HighBond platform into its extensive portfolio of tech-enabled solutions for customers.

Prominent companies within the enterprise risk management market are actively embracing innovation, introducing new technologies such as third-party risk management (TPRM) to maintain a competitive edge. Third-party risk management is a critical aspect of ensuring the security of any organization, and the selection of the right solution can have a significant impact. As an example, in August 2022, AuditBoard, a US-based audit and risk management company, launched its Third-Party Risk Management Solution. This initiative empowers enterprises to address IT vendor risk on a larger scale. The addition of this powerful solution to AuditBoard's integrated risk platform enables third-party risk management programs to scale more effectively and meet the growing demands of businesses. It achieves this by breaking down organizational silos and involving relevant stakeholders both within and outside the company.

In September 2022, IppoPay Technologies Pvt Ltd., an India-based payment infrastructure provider, completed the acquisition of Tutelar Fintech Private Limited for an undisclosed sum. This strategic move positions IppoPay to venture into the payments infrastructure market, while also leveraging Tutelar's capabilities to combat fraud in financial transactions. Tutelar Fintech Private Limited, an India-based risk management company, employs a full-stack AI approach to enhance its services.

Major companies operating in the enterprise risk management market report are Dell Technologies Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Capgemini SE, Infosys Limited, Fidelity National Information Services Inc., Thomson Reuters Corporation, Wolters Kluwer N.V., ACL Services Ltd., RSA Security LLC, OneTrust LLC, MetricStream Inc., NAVEX Global Inc., Cority Inc., Riskonnect Inc., Enablon Inc., GRC Solutions Inc., Galvanize Inc., Resolver Inc., ProcessUnity Inc., LockPath Inc., Aravo Solutions Inc., BWise Inc., LogicManager Inc., LogicGate Inc., Quantivate Inc., SAI Global Pty. Ltd., Optial Inc., Rsam LLC, Ideagen Ltd.

North America was the largest region in the enterprise risk management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the enterprise risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the enterprise risk management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary deployment options for enterprise risk management are on-premises and cloud. On-premises enterprise risk management involves the implementation of risk management solutions within an organization's in-house IT infrastructure. In this model, the responsibility for the solution and any associated processes lies with the enterprise itself. The key components of enterprise risk management encompass hardware, software, and services. End-users of enterprise risk management span various industries, including BFSI, IT and telecom, retail, healthcare, energy and utilities, manufacturing, and government and defense.

The enterprise risk management market research report is one of a series of new reports that provides enterprise risk management market statistics, including enterprise risk management industry global market size, regional shares, competitors with an enterprise risk management market share, detailed enterprise risk management market segments, market trends and opportunities, and any further data you may need to thrive in the enterprise risk management industry. This enterprise risk management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The enterprise risk management market consists of revenues earned by entities by providing enterprise risk management components including event modification and objective setting. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.