Risk Management Market Definition And Segments
Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated and economical application of resources to minimize, control, and monitor the probability or impact of unfortunate events or to maximize the realization of opportunities.
The main components of risk management are solutions, services, professionals, and management. Solutions refer to strategies, tools, technologies, or approaches designed to identify, assess, mitigate, and manage risks effectively. They include deployment modes such as cloud-based and on-premises, and it used in banking, financial services, and insurance (BFSI), information technology and telecom, healthcare, retail, manufacturing, government and defense, transport and logistics, energy and utilities, and others.
The risk management market covered in this report is segmented –
1) By Component: Solution, Services, Professional, Managed
2) By Deployment Mode: Cloud-based, On-premises
3) By Vertical: Banking, Financial Services and Insurance (BFSI), Information Technology and Telecom, Healthcare, Retail, Manufacturing, Government and Defense, Transport and Logistics, Energy and Utilities, Other Verticals
The risk management market size has grown rapidly in recent years. It will grow from $10.5 billion in 2023 to $12.09 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%. The growth in the historic period can be attributed to increased regulatory requirements, increased insurance development, increased financial crises, and globalization.
The risk management market size is expected to see rapid growth in the next few years. It will grow to $19.39 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to increasing cybersecurity threats, increasing economic volatility, and increasing health and safety concerns. Major trends in the forecast period include integration of ai and machine learning, cybersecurity risks, climate change and environmental risks, supply chain resilience, regulatory compliance, and operational resilience.
Rising Cyber Threats Propel Growth In The Risk Management Market
The rising cyber threats are expected to propel the growth of the risk management market growth going forward. Cyber threats refer to malicious activities or risks that exploit vulnerabilities in computer systems, networks, or digital devices for various purposes, including financial gain, espionage, disruption of operations, or damage to reputation. Cyber threats are on the rise due to the increasing digitization of society has expanded the attack surface, providing cybercriminals with more targets to exploit. Risk management processes enable organizations to identify and understand the various cyber threats they face, including malware, phishing attacks, data breaches, and insider threats. For instance, in November 2022, according to the Australian Cyber Security Centre, an Australia-based cyber security agency, the number of cybercrime reports received in 2022 was 76,000, representing an increase of 13% from the year before. Therefore, the rising cyber threats are driving the growth of the risk management market.
Major companies operating in the risk management market are Berkshire Healthway Inc., Allianz SE, AXA SA, Accenture plc, Tokio Marine Holdings, Deloitte Touche Tohmatsu Limited, PwC (PricewaterhouseCoopers), Liberty Mutual Insurance, Ernst & Young (EY), Chubb Limited, Zurich Insurance Group, Travelers Companies Inc., KPMG, Capgemini SE, Catlin Group Limited, Marsh & McLennan Companies, Aon plc, Willis Towers Watson, Gallagher, FM Global, Genpact, Munich Re Group, Hiscox Ltd., RSA Insurance Group, Lockton Companies, Verisk Analytics Inc., Protiviti Pvt. Ltd., SAI Global, Swiss Re Ltd., Risk Management Solutions (RMS)
Enterprise Risk Management Automation Transforming The Tech Industry
Major companies operating in the risk management market are innovating new technologies, such as enterprise risk management (ERM) automation tools, to gain a competitive edge in the market. Enterprise risk management (ERM) automation tool is a software program that helps businesses, especially technology companies, automate the risk management process. For instance, in January 2024, Insurtech Koop Insurance, a US-based insurance company, launched a pioneering enterprise risk management (ERM) automation tool. To give technology customers an enjoyable risk management experience, the tool has features like contractual requirements management, risk event reporting, control implementation, and smart coverages. The tool is intended to support technology companies in managing risks more skillfully and adaptably, staying flexible, and maintaining their competitiveness in the rapidly evolving technology market.
S&P Global Enhances Risk Management Offerings With TruSight Solutions LLC Purchase
In January 2023, S&P Global, a US-based capital market company, acquired TruSight Solutions LLC for an undisclosed amount. The acquisition was aimed at mutualizing costs, streamlining workflows, and getting rid of inefficiencies for its clients as part of S&P Global's strategic focus on offering creative, integrated solutions for risk management. It was also anticipated that the acquisition would increase the scope and complexity of S&P Global's third-party vendor risk management offerings. TruSight Solutions LLC is a US-based financial services company that offers risk management services.
North America was the largest region in the risk management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the risk management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The risk management market includes revenues earned by entities by providing services such as risk data logging, effective project management facilitation, risk analysis, risk mitigation, compliance and regulatory services, and crisis management. The market value includes the value of related goods sold by the service provider or included within the service offering. 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.
The risk management market research report is one of a series of new reports from The Business Research Company that provides risk management market statistics, including risk management industry global market size, regional shares, competitors with risk management market share, detailed risk management market segments, market trends, and opportunities, and any further data you may need to thrive in the risk management industry. This risk management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.