Worldwide IT spending pertaining to risk functions will reach more than $74 billion by 2015, according to a new study.
IDC Financial Insights, Framingham, Mass., released this finding in the second in a series of reports that forecast risk technology spending across the banking, capital markets, and insurance sectors. The report, Worldwide Risk Technology Spending – 2011 Analysis and Forecasts, examines technology spending in seven risk submarkets, including enterprise risk management and infrastructure, liquidity and asset liability management, market risk and trading, compliance and control, credit risk, financial crimes, and information security.
The research concludes that growth in IT spending on risk management will outpace the growth of overall IT spending in financial services, and will top 15% of total IT spending in financial services in 2012.
IDC Financial Insights outlines key drivers that are fueling growth in risk-related technology and services investments. Among them: regulatory uncertainty and compliance demands, mandates to improve corporate governance and financial performance across the financial enterprise, and the need to modernize and protect critical risk management infrastructures.
The report, which follows an earlier report, Business Strategy: Enterprise Risk Management Domains, Subdomains, and Markets, outlines the taxonomies and definitions for spending analysis. The can be used by risk managers and IT executives to organize internal analysis of risk management assets and identity gaps and areas where new investments should be considered, IDC says.