As a percentage of total IT spending, risk IT will account for 16.5 percent of all spending in 2014, growing to 18 percent of total spending by 2017, as risk management technologies, services and solutions continue to participate in a growing market that is core to business strategies across the banking, capital markets and insurance sectors.
The report from IDC Financial Insights, "Worldwide IT Spending 2012-2017 – Risk IT (RITS) Spending Guide 2H 13 Update," projected the worldwide risk information technologies and services (RITS) market will account for $71.2 billion in 2014, and is expected to reach $87.4 billion by 2017, growing at a composite aggregate growth rate (CAGR) of nearly 7 percent during the forecast period.
The study predicted risk management mash-ups of big data analytics, cloud and social networking would offer organizations the greatest opportunity to contribute to customer value creation, improved control and efficiencies in operations for the industry.
However, the report also noted risk management and regulatory compliance will not be a safe-haven from the demand for operational efficiency.
The bi-annual report was developed to provide a global view of the industry while including industry-specific forecasts relative to the technologies and services for managing credit, market and operational risks across the aforementioned banking, capital markets and insurance financial sectors.
"Regulatory pressures, tightening and oversight resulting from the financial and economic upheavals of the past decade and the first three years of the current decade continue to be prime motivators for risk management investments," Michael Versace, global research director of IDC Financial Insights, said in a statement.
In addition, the report predicted risk officers would continue to operate from a full plate of regulatory change, as their organizations absorb the regulatory underpinnings of future financial operations.
"Risk IT strategies and investments over the forecast period will remain critical as policymakers around the globe stay focused on capital buffers, trade transparency, accounting and reporting improvements, internal control and IT system continuity, third-party risk, financial crime and fraud, and the impact of cyber-threats on the safety and soundness of the financial marketplace," Versace continued.
IDC’s Financial Insights reports provides detailed market data on the corresponding industry, providing a profile of the IT growth opportunity segmented by technology components, solution categories and institution types and sizes.
These pivot table tools present spending forecasts according to current assumptions related to economic trends, end-user surveys and IDC Financial Insights’ segmented research expertise.