Global IT spending on risk technologies and services is anticipated to reach $80bn by 2017, according to a new report from IDC Financial Insights.
Factors which could contribute for the rise in spending include overall macroeconomic factors, commissioning of the large enterprise-wide risk projects of the 2009-2012 risk-rebuild era, renewed attention and budget allocation towards profitable business productivity.
In addition optimisation of IT infrastructure and incorporation of 3rd platform technologies in front, middle, and back office operations will also boost investment.
IDC Financial Insights global research director Michael Versace said despite the research firm’s more conservative forecasts, risk spending is still outpacing growth in overall IT spending, representing between 15% and 17% of overall IT spending on average.
"And many spending hot spots remain through all global regions including credit analytics, compliance and ERM in APAC region, fraud, financial crime management, and information security services and software in North America and across European firms, and others," Versace said.
"At the same time, executives continue to look for risk technology investment value over the long term by establishing a standard for building risk management into all strategic, business IT, and operation IT initiatives, versus being reactive or bolting on initiatives after the fact."
The research firm also highlights the significance of supporting the analytic backbone of the risk function including financial crime management, operational control, cyber security, and critical infrastructure protection in a bid to stay competitive and more risk aware.
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Additionally, the report says that CROs and CIOs cannot avoid regulatory compliance obligations, increasing the risk management talent pool, and influencing risk management opportunities that emerge from the growing use of big data and mobile.
