The global risk analytics market was valued at USD 9.15 billion in 2017, and is expected to reach a value of USD 19.31 billion by 2023 at a CAGR of 13.26%, during the forecast period (2018-2023). The market is segmented by type of offering, applications, end-user vertical, and geography. This report focuses on adoption of these solutions for various applications various regions. The study also emphasizes on latest trends, industry activities, and vendor market activities.
Today, risk analytics techniques are enabling organizations and risk managers to measure, quantify, and even predict risk with more certainty than ever before. Analytics is excelling in cracking the complex nature of the businesses and is helpful in establishing a baseline for measuring risk across the organization by drawing together many strands of risk into one consolidated system and giving executive clarity in identifying, viewing, understanding, and managing risk.
As part of digital transformation projects, firms in the market will allocate a huge amount of money to risk management technologies and services. The IT spending focus on risk and operational efficiency is reported to be among the top IT priorities of the businesses. According to Global Association of Risk Professionals, it is estimated that capital markets, banking and insurance sectors are likely to spend USD 96 billion, on risk information technologies and services.
The market is expected to move towards taking a unified approach to risk management, and developing an integrated risk management solutions to enable business units and functions to incorporate risk intelligence into the many actions they take across different business units. Deployment of these solutions over the cloud is expected to provide opportunities to SMEs to take better decisions. However, the cyber risks associated are the major factor restraining the deployment of these solutions over the cloud.
BFSI to Witness Huge Adoption of Risk Analytics Solutions
Banks across the globe are realizing that they need a more rational approach for managing a growing plethora of risks enveloping the banking and financial industries landscape, and have now understood the significance of risk analytics. The objective of risk analytics is to establish an integrated approach and consistent set of processes that reduce the redundant risk & control activities that eliminate duplication in the business units, and cut down costs.
Approximately 73% of the banks are expected to drive the highest amount of investment in risk analytics are data quality and sourcing, systems integration, and modeling.
Risk analytics enables the banks and finance institutions to move away from the “silo” approach to risk management and move towards the “holistic” view of enterprise wide risks. For instance, in Operational Risk Management (ORM) the number of transactions that needed to be monitored is growing at an exponential rate, thus, implying the pressure of current banking infrastructure and enabling the market for risk analytics.
North America to Hold the Largest Share in 2018
North America held the largest market share in 2017, and Asia Pacific region is expected to grow with highest CAGR during the forecast period 2018-2023.
The United States holds the largest share of the market due to the presence of large number of services and software providers, whereas presence of large number of SME’s and increasing technological penetration in Asia Pacific region, especially in countries, like China, India, Vietnam, is expected to fuel the market growth in this region.
Key Developments in the Market
- January 2018 - SAS enabled artificial intelligence (AI) solutions by leveraging machine learning, deep learning, text analytics, forecasting and statistics. Its latest SAS Platform release includes a new offering, SAS Visual Text Analytics, and significant enhancements to SAS Visual Data Mining and Machine Learning. They both take advantage of the new capabilities available in SAS Viya. These solutions are likely to address their portfolios in ERP, CRM and risk management software
The major players include: IBM, Oracle, SAS, SAP, amongst others.
Reasons to Purchase this Report
- To analyze various perspectives of the market with the help of Porter’s five forces analysis
- To understand the end-user vertical that is likely to witness highest adoption
- To identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
Customization of the Report
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1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Factors Driving the Market
4.2.1 Increased Market Risk Due To Economic Instability And Market Competitiveness
4.2.2 Global Regulatory Frameworks And Government Policies
4.3 Factors Restraining the Market
4.3.1 High Installation And Operational Costs
4.3.2 Lack Of Awareness Of Risk Analytics Tools Especially In Sme’s
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Industry Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products or Services
4.5.5 Competitive Rivalry among Existing Competitors
5. Technology Snapshot
6. Global Risk Analytics Market Segmentation
6.2.1 Credit Risk
6.2.2 Market and Liquidity Risk
6.2.3 Operational Risk
6.2.4 Portfolio Risk Management
6.3 End-user Vertical
6.3.1 Banking & Financial Services
6.3.5 Others (Government, Energy, Mining)
6.4 By Geography
6.4.1 North America
6.4.4 Rest of the World
7. Competitive Intelligence - Company Profiles
7.1 IBM Corporation
7.2 Oracle Corporation
7.3 Moody's Analytics
7.4 SAP SE
7.5 SAS Institute Inc.
7.6 Mu Sigma
7.8 Strategic Thought Group
7.10 Real Time Risk Systems
7.12 Financial Sciences
8. Investment Analysis
9. Future Outlook of Risk Analytics Market