Risk Management Software Market: Current Analysis and Forecast (2021-2027)

Risk management software is a set of tools that help companies prevent or manage critical risks that all businesses face, including finance, legal, and regulatory compliance and strategic and operational risks. Risk management software can help organize and track your risks, so one can prioritize tasks needed to manage and/or overcome the various risks one faces. The risk management tools are analytical in nature, where they use the existing data to identify risk and take measures to avoid a potential crisis. The risk management process helps in assuring the confidentiality and integrity of both personal and business data.

The growing integration of artificial intelligence in risk management software is expected to create new opportunities for the market which is expected to drive the market during the forecast period. Furthermore, rising adoption from financial institutions, stringent government regulatory compliances, and rising data & security breaches in enterprises is expected to drive the risk management software market. Additionally, surge in data security breaches in enterprises. For instance, The average per record (per capita) cost of a data breach increased by 10.3 percent from 2020 to 2021.

Based on component, the market is segmented into enterprise risk management, financial risk management, application risk management, and others. The financial risk management software segment is expected to achieve a significant CAGR during the forecast period. The growing adoption of financial risk management software can be attributed to the growing risk of data misuse in several enterprises. Furthermore, rising awareness regarding these solutions to support the financial system and minimize losses, rising product demand from the developing regions, and the transformation of various institutions from traditional to digital models, are expected to aid the market growth.

Based on deployment , the market is segmented into on-premises and cloud. The cloud segment is expected to grow significantly during the forecast period. The growth of the cloud segment can be attributed to ease of implementation and the pay-as-per-usage model. Furthermore, the cloud allows industries to stay up-to-date and aware with real-time dashboard alerts. Additionally, with cloud deployment, data can be synchronized seamlessly from multiple sources as it provides the ability to communicate and share data more easily than on-premise.

Based on end-user, the market is segmented into consumer goods, transport & logistics, healthcare, retail, manufacturing, food & beverage, and others. Transport and logistics is the fastest-growing segment of the risk management software. The adoption of risk management software in transport and logistics segment is very rapid, risk management software are used in applications such as estimating shipment histories, demand forecasting, and freight in transit applications is poised to propel the market growth.

For a better understanding of the market adoption of green technology and sustainability, the market is analyzed based on its worldwide presence in the countries such as North America (US, Canada, Rest of North America), Europe (Germany, France, Spain, UK, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The North American market is expected to dominate the risk management software market and is expected to continue the same throughout the forecast period. Owing to the rise of cybersecurity threats, the rapid adoption of risk management software by different banks and the FinTech industry to manage different types of risks, and the presence of prominent key players. Furthermore, early adoption of advanced digital technologies and high investments in adopting them. The presence of large number of manufacturing plants and big retail chains drives the adoption of risk management software.

The Major companies in the market are IBM, NAVEX, Inc., Logicmanager, Inc., MetricStream., Qualys, Inc., RSA Security LLC., SAP, SAS Institute Inc. , Servicenow, CENTRL, Inc.