Global Enterprise Risk Management Market, Component (Hardware, Software, and Services), Organization Size (Small and Medium Enterprises (SMEs), and Large Enterprises), Deployment (Cloud and On-Premises), Institution (Banks, Credit Unions, Specialty Finance, and Thrifts), Risk Type (Hazard risk, Financial risk, Operational risk, and Strategic risks), End-User (BFSI, IT and Telecom, Retail, Healthcare, Energy and Utilities, Manufacturing, Government and Defense, and Others) – Industry Trends and Forecast to 2031.
Enterprise Risk Management Market Analysis and Size
The enterprise risk management market continues to advance with the latest methods and technologies, driving substantial growth. Innovations such as AI-driven risk analytics, predictive modeling, and cloud-based solutions are reshaping how businesses manage risks. This evolution enhances decision-making by providing real-time insights and proactive risk mitigation strategies, crucial for navigating complex and dynamic business environments effectively.
The global enterprise risk management market size was valued at USD 4.81 billion in 2023 and is projected to reach USD 7.33 billion by 2031, with a CAGR of 5.40% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 - 2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Component (Hardware, Software, and Services), Organization Size (Small and Medium Enterprises (SMEs), and Large Enterprises), Deployment (Cloud and On-Premises), Institution (Banks, Credit Unions, Specialty Finance, and Thrifts), Risk Type (Hazard risk, Financial risk, Operational risk, and Strategic risks), End-User (BFSI, IT and Telecom, Retail, Healthcare, Energy and Utilities, Manufacturing, Government and Defense, and Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Market Players Covered
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IBM (U.S.), Capgemini (France), FIS (U.S.), Infosys Limited (India), Oracle (India), SAP SE (Germany), LogicManager, Inc. (U.S.), MetricStream (U.S.), SAI360 Inc. (Netherlands), Dell Inc. (U.S.), SAS Institute Inc. (U.S.), Intelex Technologies (Canada), Microsoft (U.S.), Thomson Reuters (Canada), Wolters Kluwer N.V. (Netherlands), SAI Global Pty Limited (Australia), ProcessGene Ltd. (Israel)
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Market Opportunities
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Market Definition
Enterprise Risk Management (ERM) is a structured approach to identifying, assessing, and managing risks across an organization. It integrates risk considerations into strategic decision-making to optimize risk-reward trade-offs and enhance resilience. ERM encompasses processes, frameworks, and methodologies to proactively mitigate potential threats while leveraging opportunities, ensuring alignment with business objectives and regulatory requirements.
Enterprise Risk Management Market Dynamics
Drivers
- Demand for Real-Time Insights
The demand for real-time risk monitoring and reporting capabilities is a significant driver for the enterprise risk management (ERM) market. Organizations require agile enterprise risk management solutions to swiftly identify and mitigate emerging risks, such as cyber threats or supply chain disruptions. For instance, financial institutions use real-time analytics to monitor market fluctuations and adjust strategies promptly. This urgency underscores the market's shift towards ERM systems that offer dynamic, responsive features to enhance risk resilience and operational continuity.
- Rising Cybersecurity Concerns
Rising cybersecurity threats are compelling organizations to adopt robust Enterprise Risk Management (ERM) frameworks. These frameworks enable proactive management and mitigation of risks such as data breaches, cyberattacks, and information security vulnerabilities. For instance, industries such as finance and healthcare are increasingly investing in advanced ERM solutions to protect sensitive customer data and maintain operational resilience against evolving cyber threats, thereby driving growth in the ERM market.
Opportunities
- Demand for Integrated Risk Management
The demand for integrated risk management solutions is surging as organizations prioritize holistic approaches to managing diverse risks such as financial, operational, compliance, and strategic. This trend drives adoption of comprehensive ERM platforms that streamline risk assessment, mitigation, and reporting across all business functions. For instance, a multinational corporation uses an integrated enterprise risk management system to consolidate risk data from different departments, enabling proactive decision-making and ensuring regulatory compliance globally.
- Increasing Executive and Board Oversight
Increased executive and board emphasis on governance and risk oversight is a pivotal driver of the enterprise risk management (ERM) market. Organizations prioritize transparency and accountability through advanced ERM solutions, ensuring comprehensive risk identification and mitigation strategies. For instance, financial institutions adopting ERM platforms integrate real-time risk assessments to align with regulatory requirements and stakeholder expectations, enhancing operational resilience and strategic decision-making capabilities across diverse sectors.
Restraints/Challenges
- Shortage of Skilled Professionals
The enterprise risk management (ERM) market faces challenges due to a shortage of skilled professionals proficient in implementing and managing ERM frameworks and technologies. This scarcity hinders effective deployment and maintenance of ERM solutions across organizations, potentially limiting market growth and adoption. Addressing this skill gap is crucial to meet the increasing demand for comprehensive risk management solutions in the business environment.
- Risk Measurement and Assessment
The subjective and challenging nature of quantifying and assessing risks across diverse business units and processes presents a significant hurdle in the enterprise risk management market. This complexity can lead to discrepancies in risk evaluation, hindering the market's effectiveness. Organizations struggle to achieve standardized risk assessments, impacting decision-making and overall risk management strategies within enterprises.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- In June 2023, Federal bank regulatory agencies jointly issued comprehensive guidance to assist banking organizations in managing risks associated with third-party relationships, including those involving financial technology firms. This guidance includes practical examples tailored to help community banks align their risk management strategies with the specific risks posed by their third-party relationships
- In May 2022, The Association of Banks in Singapore (ABS) introduced a standardized questionnaire for use by Singaporean banks in discussions with corporate clients about environmental risks. This tool aims to gather data and identify opportunities for financing initiatives that support the transition to a sustainable, low-carbon economy. Oversight of environmental risk management guidelines rests with the Monetary Authority of Singapore (MAS) task force
- In May 2021, Wolters Kluwer's Compliance Solutions announced updates to its Deposit and IRA Document Suite (DIDS), offering a comprehensive library of banking documents for deposit and individual retirement account services
- In January 2021, MetricStream partnered with SmarTek21 to enhance customer experience by integrating AI-powered virtual agent capabilities into the MetricStream Platform and its product offerings
Enterprise Risk Management Market Scope
The market is segmented on the basis of component, organization size, deployment, institution, risk type, and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Hardware
- Software
- Services
Organization Size
- Small and Medium Enterprises (SMEs)
- Large Enterprises
Deployment
- Cloud
- On-Premises
Institution
- Banks
- Credit Unions
- Specialty Finance
- Thrifts
Risk Type
- Hazard Risk
- Financial Risk
- Operational Risk
- Strategic Risks
End-User
- BFSI
- IT and Telecom
- Retail
- Healthcare
- Energy and Utilities
- Manufacturing
- Government and Defense
- Others
Enterprise Risk Management Market Regional Analysis/Insights
The market is analysed and market size insights and trends are provided by country, component, organization size, deployment, institution, risk type, and end-user as referenced above.
The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America is expected to dominate the enterprise risk management market, driven by widespread digital transformation in banking institutions and favorable government regulations in the region, fostering growth and adoption of advanced risk management solutions.
Asia-Pacific is expected to witness significant growth in the enterprise risk management market during the forecast period, driven by widespread adoption of ERM solutions across diverse business segments in the region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Enterprise Risk Management Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Some of the major players operating in the market are:
- IBM (U.S.)
- Capgemini (France)
- FIS (U.S.)
- Infosys Limited (India)
- Oracle (India)
- SAP SE (Germany)
- LogicManager, Inc. (U.S.)
- MetricStream (U.S.)
- SAI360 Inc. (Netherlands)
- Dell Inc. (U.S.)
- SAS Institute Inc. (U.S.)
- Intelex Technologies (Canada)
- Microsoft (U.S.)
- Thomson Reuters (Canada)
- Wolters Kluwer N.V. (Netherlands)
- SAI Global Pty Limited (Australia)
- ProcessGene Ltd. (Israel)
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