Enterprise Risk Management Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The global enterprise risk management (ERM) market was valued at USD 4.95 Billion in 2024. Increased demand is fuelled by growing exposure to third-party cyber threats, prompting businesses to adopt integrated solutions aligned with ISO 31000 and NIST frameworks. In turn, the market is expected to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to reach a value of USD 8.30 Billion by 2034.

Market growth can also be attributed to the surge in digital threats, stringent regulations, and a growing corporate demand for predictive analytics. As financial crimes and compliance breaches intensify, global organisations are integrating ERM solutions to safeguard assets and gain strategic agility. In January 2024, the Financial Conduct Authority (FCA) rolled out new risk governance standards that impacted several United Kingdom-based institutions. Parallelly, the United States’ SEC introduced climate-risk disclosure requirements in March 2024, compelling listed firms to embed ESG metrics into risk assessments.

Another standout trend in the enterprise risk management market is governments linking ERM compliance to incentives. The EU’s Digital Operational Resilience Act (DORA) incentivises firms that adopt real-time risk monitoring technologies, including AI-enabled risk dashboards. Innovations like adaptive risk engines and blockchain-based audit trails are also boosting the demand, particularly in banking and insurance sectors.

With increasing interconnectedness of risks in cyber, financial, regulatory, and climate sectors, organisations are leveraging ERM as a core pillar in strategic planning. The shift toward integrated, real-time risk visibility is gaining momentum, especially as investors and regulators demand more transparent, auditable, and resilient governance frameworks.

Key Trends and Recent Developments

August 2024

HITRUST announced the release of its AI Risk Management (AI RM) Assessment, the first thorough evaluation method for an organisation's Artificial Intelligence (AI) risk management procedures in the industry. This marks a critical advancement as organisations seek structured, auditable AI risk frameworks, aligning ERM tools with emerging AI governance and regulatory expectations.

June 2024

A major improvement in Baker Tilly's enterprise risk management (ERM) capabilities was announced. With the addition of six seasoned individuals with a range of ERM expertise, industry knowledge, and cutting-edge AI-enabled tools, Baker Tilly is now better equipped to provide unrivalled ERM solutions that integrate strategy, risk, and compliance. The integration of AI-powered solutions with domain-specialised talent positions Baker Tilly to meet rising enterprise demand for ERM services that connect compliance, resilience, and performance strategy.

May 2024

Board Reporting for Enterprise Risk Management (ERM) was introduced by Diligent, a GRC SaaS company based in Sydney, Australia. Enhancing board members' knowledge and risk management skills, the ERM dashboard, a new feature of the Diligent One Platform, provides simply comprehensible risk reports full of pertinent and verified data. By simplifying complex risk data for board-level consumption, Diligent addresses growing pressure on governance bodies to stay ahead of systemic, reputational, and regulatory risks.

January 2024

i.Riskman, an ESG (Environmental, Social, and Governance) risk assessment platform, was launched by Tech Mahindra. The platform’s purpose is to enable organisations to recognise, evaluate, and control climate-related risks. It offers a thorough way to assess how climate threats affect financial considerations, business plans, and total risk exposure. The platform underscores the shift toward ESG-integrated ERM, providing companies a digital route to quantify climate risk exposures and their operational-financial implications with traceable assessments.

AI-Driven Predictive Risk Modelling

Organisations are increasingly preferring AI-based ERM platforms to identify risk correlations and project future outcomes, boosting the enterprise risk management market development. Companies like Tesla, PayPal, and Visa have deployed machine learning models to predict operational risk events 90 days in advance, reducing exposure by a significant extent. The United Kingdom’s Centre for Data Ethics and Innovation is also supporting AI deployment in risk forecasting. This trend is disrupting conventional risk registers, making room for dynamic, self-learning engines. AI tools not only detect anomalies but also suggest pre-emptive actions. Especially in sectors like insurance and energy, predictive modelling enables real-time responsiveness to evolving geopolitical or climate risks.

Integration of ESG into ERM Frameworks

The integration of environmental, Social, and Governance (ESG) risks into ERM frameworks has been a key trend that is shaping the enterprise risk management market dynamics. The EU’s Sustainable Finance Disclosure Regulation mandates climate-related risk disclosures, pushing firms to embed ESG metrics into risk matrices. For instance, in January 2024 Allianz launched an ERM dashboard aligning carbon exposure with investment risk. This alignment is driving ESG-oriented investments, where risk resilience is tied to sustainability KPIs. B2B buyers are now seeking partners with robust ESG risk ratings.

Real-Time Risk Visualisation and Dashboards

As per the enterprise risk management market report, advanced ERM tools now offer immersive dashboards powered by visual analytics and IoT data streams. For example, Barclays offers real-time cyber risk heatmaps for their executive board, enabling immediate actions. Governments are also embracing this trend. In April 2024, Singapore’s MAS co-developed interactive visual dashboards with 6 commercial banks including DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered Bank to monitor systemic financial risks. This real-time capability is critical in volatile environments where reactive controls consume time. Stakeholders are investing in ERM systems that make risk visibility immediate, interactive, and intuitive.

RegTech Collaboration for Compliance Risk Management

Companies in the enterprise risk management industry are merging with RegTech ecosystems to automate compliance updates, track regulatory shifts, and manage audit trails. For example, in September 2024, the Digital Securities Sandbox (DSS), the United Kingdom counterpart of the EU DLT Pilot regime, was launched by the Bank of England (BoE) and Financial Conduct Authority (FCA). By permitting businesses to function under a temporarily altered legal and regulatory framework, the DSS will make it easier to deploy emerging technologies, including DLT, in the issuance, trading, and settlement of securities. By combining the notary, maintenance, and settlement functions typically performed by central securities depositories (CSDs) with the management of a trading venue, the sandbox will enable newcomers to participate. These tools track jurisdictional regulation changes in real-time, translating them into actionable workflows. Capgemini’s ERM suite now includes embedded regulatory AI that flags non-compliance risks. This convergence reduces costs, increases speed-to-compliance, and keeps organisations audit-ready.

Cybersecurity Risk as a Strategic Lever

Cyber risk is now viewed as a top priority for business continuity. ERM platforms are integrating with Security Information and Event Management (SIEM) tools to monitor vulnerabilities in real time. For example, Lloyds Banking Group embedded ERM into their cybersecurity framework to simulate breach scenarios and recovery paths. United Kingdom’s National Cyber Security Centre is supporting this alignment by providing threat intelligence feeds compatible with ERM tools. As cyber threats grow in volume and velocity, B2B clients are inclining towards partners with holistic cyber-risk governance embedded within their ERM approach.

Global Enterprise Risk Mangement Industry Segmentation

The report titled “Global Enterprise Risk Management Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Hardware
• Software
• Services

Key Insight: The global market spans across hardware, software, and services, each playing a role in driving organisational resilience. Software leads in functionality and innovation, enabling seamless integration with enterprise ecosystems. Services offer tactical execution and regulatory alignment in a modular fashion. Hardware, being essential for sectors like defence or critical infrastructure, plays a supportive role in housing real-time data feeds or operational control systems.

Market Breakup by Institution

• Banks
• Credit Unions
• Specialty Finance
• Thrifts

Key Insight: Enterprise risk management adoption varies across institutions, shaped by regulatory scrutiny and operational complexity. Banks dominate the market due to systemic exposure and supervisory expectations. Credit unions follow, focusing on community-centric governance. Specialty finance firms are ramping up ERM investments to meet investor and regulator demands. Thrifts, although smaller, are integrating risk modules to enhance transparency. The intensity and type of risk, whether credit, operational, cyber, or ESG, determines ERM strategy. Institutional culture also influences how ERM is implemented, from boardroom mandates to operational risk mapping.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: The enterprise risk management industry is shaped by legal environments, digital readiness, and industrial diversity. North America dominates in adoption and technology innovation, while Europe aligns ERM with ESG and regulatory harmonisation. Asia Pacific shows rapid uptake, driven by digital finance expansion and regulatory evolution. Latin America is emerging fast through fintech-led demand, while the Middle East and Africa are gradually integrating ERM in critical sectors like energy and banking.

Global Enterprise Risk Mangement Market Share

By Component, the Software Category Accounts for the Bigger Share of the Market

Software remains the largest and most critical component contributing to the global market value, especially due to its scalability and ability to integrate with enterprise tech stacks. Risk management software is evolving into intelligent, customisable platforms featuring AI modules, regulatory compliance tracking, and scenario modelling. For example, MetricStream’s ERM platform offers predictive analytics for risk clusters. Financial institutions are opting for SaaS-based ERM systems to stay agile in fast-changing regulatory environments.

Services, including consulting, implementation, and managed risk services, are experiencing the rapid growth in the enterprise risk management market. As regulatory environments become multifaceted, organisations seek external expertise to tailor ERM strategies. Firms like PwC and EY now offer ERM-as-a-Service for financial institutions adapting to Basel IV and Solvency II frameworks. The market further observes a surge in demand for risk maturity assessments, gap analysis, and cloud-migration support. Hybrid delivery models, blending onsite and remote expertise, have been in demand. Services are increasingly bundled with technological upgrades, which makes them integral for holistic risk strategy deployment.

By Institution, Banks Register the Dominant Share of the Market

Banks currently dominate the enterprise risk management market due to their heavy exposure to financial, cyber, and regulatory risks. From credit risk scoring to anti-money laundering (AML) systems, ERM tools are deeply entrenched in bank workflows. Companies like Barclays and HSBC use advanced ERM platforms for real-time scenario planning aligned with Basel IV. Central banks are also enforcing tighter stress-testing protocols, making ERM adoption non-optional. With integrated reporting frameworks and compliance-linked incentives, banks are investing in systems that not only mitigate risk but also inform lending, investment, and capital allocation strategies.

Specialty finance firms including leasing companies, peer-to-peer lenders, and private equity are now witnessing rapid demand for enterprise risk management to gain investor confidence and regulatory clearance. These firms often operate in niche verticals with unconventional risk profiles. Platforms like OnDeck and Funding Circle are now deploying cloud-native ERM modules to track risk-adjusted returns, fraud vectors, and portfolio volatility. Their lean operational models demand flexible, AI-enabled solutions.

Global Enterprise Risk Management Market Regional Analysis

By Region, North America Holds the Leading Position in the Industry

The ongoing dominance of the North American market is propelled by high regulatory rigour and sophisticated technology adoption. The United States’ Sarbanes-Oxley Act and Canada's OSFI guidelines have compelled firms to come up with structured risk reporting. Technology giants like IBM and Oracle offer ERM solutions tailored to complex regulatory environments. North American firms often pilot new technologies, like AI for risk classification or blockchain for audit trails, accelerating the enterprise risk management opportunities.

Asia Pacific represents the fastest-developing regional market, driven by regulatory transformations, financial inclusion, and digital economy acceleration. In December 2024, the Monetary Authority of Singapore expanded its risk governance framework, prompting regional firms to adopt formal ERM solutions. India and China are also pushing digital lending reforms, catalysing demand for AI-based risk analytics. Local start-ups and banks are investing in cloud-native ERM tools to manage rising cyber and compliance risks. Additionally, cross-border data regulations and ESG disclosures are compelling enterprises to re-develop their risk infrastructures, spurring collaborations between fintech firms and legacy institutions across the APAC region.

Competitive Landscape

Leading enterprise risk management market players are investing in flexible, cloud-native solutions with embedded analytics and real-time reporting. Focus areas of these firms include cross-border regulatory intelligence, ESG risk alignment, and automated audit readiness. Providers are also forming alliances with RegTech firms and cybersecurity specialists to offer full-stack risk solutions. They are offering vertical-specific solutions including banking, healthcare, or manufacturing for better differentiation.

Moreover, enterprise risk management companies find growth opportunities in mid-market penetration and hybrid deployment models. Some of the key trends observed in the market include AI-powered modelling, ESG integration, real-time dashboards, RegTech integration, and cybersecurity governance. As compliance demands grow and risk complexity escalates, players offering unified yet adaptive ERM ecosystems, are expected to lead the market in the coming years. Geographic expansion, especially in APAC and MEA, is also a key agenda for players seeking growth beyond saturated Western markets.

SAI Global Pty Limited

SAI Global Pty Limited, established in 1922 and headquartered in Sydney, focuses on governance, risk, and compliance platforms. The company offers industry-specific ERM frameworks integrated with real-time incident management modules.

Capgemini SE

Capgemini SE, founded in 1967 and headquartered in Paris, delivers consulting-led ERM solutions embedded with AI and blockchain. Their ERM services are widely adopted in banking and telecom sectors.

Dell Inc.

Dell Inc., founded in 1984 and based in Round Rock, Texas, United States, offers infrastructure-backed ERM systems that blend cybersecurity resilience with predictive threat modelling, tailored for large enterprises.

Fidelity National Information Services, Inc.

Fidelity National Information Services, Inc., or FIS, founded in 1968 and headquartered in Florida, United States, provides ERM platforms for financial institutions, with built-in compliance tracking and scenario stress testing.

Other key players in the market are Infosys Limited, LogicManager Inc., and Fidelity National Information Services, Inc., among others.

Key Highlights of the Global Enterprise Risk Management Market Report:

• Precise historical assessments and forward-looking forecasts up to 2034, shaped by sector-specific risk trends.
• Detailed vendor mapping spotlighting innovation in governance, risk, and compliance (GRC) platforms across banking, energy, and healthcare verticals.
• Regional tracking of ESG-driven risk frameworks gaining traction across Western Europe and Asia Pacific corporates.
• Evidence-backed outlook on investment in predictive risk analytics, with use cases in large-cap firms and public sector bodies.

Why Rely on Expert Market Research?

• Domain expertise in enterprise solutions with access to proprietary risk adoption datasets.
• Insights shaped by hands-on interviews with CISOs, CROs, and risk strategists across industries.
• Each report is designed to support regulatory planning, vendor selection, and board-level strategy alignment.
• Bridging raw data with strategic context to help firms future-proof operations in a high-risk landscape.