PUBLISHER: The Business Research Company | PRODUCT CODE: 1808700
PUBLISHER: The Business Research Company | PRODUCT CODE: 1808700
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.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.
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 size has grown rapidly in recent years. It will grow from $12.09 billion in 2024 to $13.71 billion in 2025 at a compound annual growth rate (CAGR) of 13.3%. 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 $21.51 billion in 2029 at a compound annual growth rate (CAGR) of 11.9%. 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.
The forecast of 11.9% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through degraded mitigation capabilities, as stress testing frameworks and scenario analysis tools, primarily sourced from China and Poland, face implementation delays due to higher technology costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
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 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.
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.
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)
North America was the largest region in the risk management market in 2024. 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.
Risk Management Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on risk management market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for risk management ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The risk management market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.