Operational Risk Management Solution Market Size Outlook 2028

The operational risk management solution market size is expected to grow from US$ 1,656.4 million in 2021 to US$ 3,098.0 million by 2028; operational risk management solution market share is estimated to grow at a CAGR of 9.4% from 2021 to 2028.

Operational risk management solution market industry enable businesses to develop and implement strategies for effectively managing the risk of loss resulting from failed or inadequate internal processes and systems in operational risk management solution market analysis. The operational risk management solutions empower users’ business to integrate risk and incident management in business processes, create a risk-aware culture through the enforcement of accountability, link risk management directly to decision making, and monitor organizational & individual performance against goals & objectives. The operational risk management solution provides several features and benefits, including support for multiple methodologies & frameworks to manage operational risk & ensure compliance against regulations; actual-time visibility through interactive dashboards & reports; alert users & managers to tasks, actions, and escalations regarding operational risk management tasks; safeguard operational information through roles-based security & audit trails; and host compliance information on-site or in the cloud. The above features and benefits of operational risk management solutions market growth help effectively manage the risks in any organization.

Factors such as increasing adoption of operational risk management in fintech companies and rising instances of cyber-attacks are influencing the operational risk management solution market growth. However, the complexities associated with operational risk management solutions are restraining operational risk management solution market growth. Moreover, the ongoing implementation of hybrid working styles and artificial intelligence (AI) integration in operational risk management are other factors contributing to operational risk management solution market growth.

Strategic Insights

Impact of COVID-19 Pandemic on Operational Risk Management Solution Market

North America is one of the most supportive regions for the adoption and growth of new technologies due to favorable government policies to boost innovation, the presence of a substantial industrial base, and high purchasing power in developed countries, such as the US and Canada. The US is a prominent market for operational risk management solutions in several industries, including BFSI, transportation & logistics, and healthcare. The country consists of the maximum number of operational risk management solution developers. Further, the COVID-19 pandemic had forced companies to adopt work from home trends. In 2020, the COVID-19 pandemic created an enormous challenge for businesses in North America to continue operating despite massive shutdowns of offices and other facilities. The changing nature of working style affected information technology (IT) security. Therefore, organizations witnessed an increased risk of cyberattacks due to the extensive use of open-source software or apps, such as zoom and skype, during remote working. Furthermore, the surge in digital traffic presented an opportunity to numerous online frauds, phishing attacks, denial of inventory, and ransomware attacks. Due to the increased risk of cybercrimes, enterprises look for advanced operational risk management solutions to detect and manage any abnormal behavior in the networks. Thus, the growing remote working facility is rising the operational risk management solution market growth in the region. In 2021 and 2022, the demand for operational risk management solutions increased due to enterprises' rising trend of hybrid working styles. The digital transformation of businesses in several industries such as BFSI, pharmaceutical, and transportation & logistics support the growth of the operational risk management solution market in North America.

Lucrative Regions for Operational Risk Management Solution Market

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Market Insight

Increasing Adoption of Operational Risk Management in Fintech Companies

From the past few years, Fintech companies have emerged and grown rapidly. For instance, according to the article published by the Milan Fintech Summit (Fiera Milano Media SpA), the number of global fintech startups tripled in the last two years, rising from over 12,200 in 2019 to 26,000 in 2021. Technology has been an enormous growth area in the last decade and has helped boost all industries. Due to the continuous technological changes and innovation, new risks are constantly emerging in the Fintech companies, such as fraud risk, merchant risk, regulatory risk, anti-money laundering and countering terrorist financing, consumer risks, data privacy, credit risk, and outsourcing risk. These risks can be effectively handled with the help of operational risk management solutions. The increase in the new Fintech companies has also increased the new risks and challenges, which must be appropriately addressed as they may represent themselves in several types. With the rapid pace of innovation, not only does it pose difficulties to the financial companies but also to the regulators. Several companies providing operational risk management solutions for Fintech companies include MetricStream, CURA Software Solutions, CAREWeb, and SAP SE. Further, in August 2021, HDFC Bank (India’s largest private sector bank) adopted Bloomberg’s multi-asset risk management system in its technology stack, preparing for the transition to risk-free rates (RFR). In February 2021, the Reserve Bank of India (RBI) directed non-banking financial companies (NBFCs) and urban cooperative banks (UCBs) to implement a risk-based internal audit (RBIA) system. Therefore, the increasing adoption of operational risk management solutions in Fintech companies due to several benefits is supporting the growth of the operational risk management solution market.

Deployment Type Segment Insights

The operational risk management solution market, based on deployment type, is bifurcated into cloud and on-premises. The successful management of operational risks that are inherent in the implementation of the business plan is the value proposition for strong operational risk management (ORM).  Further, the highest return on investment is when program measurements align with the organization's strategy, goals, and values. In today's business climate, operational risk management's efficacy and efficiency continue to be a key focus. Risk managers are being requested to accomplish effective operations with less resources, the ability to show the benefits of cloud-based ORM frameworks is becoming more important. This pressure is motivating risk managers to investigate and adopt new technology and strategies that might help them better their operations in the operational risk management solution market.

Operational Risk Management Solution Market, by Deployment Type (% Share)

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The market players focus on new product innovations and developments by integrating advanced technologies and features to compete. In January 2022, Adapt IT Holdings Limited (“Adapt IT”), had been acquired by Volaris Group Inc. (Volaris). The acquisition results in the diversified South African software company being backed by a well-capitalized leading global technology firm keen to support further growth.

Based on deployment type, the operational risk management solution market is bifurcated into cloud and on-premises. The market, based on enterprise size, is bifurcated into SMEs and large enterprise. Based on region, the global operational risk management solution market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Operational Risk Management Solution Market – Company Profiles

• Adapt IT Holdings Ltd
• MetricStream, Inc.
• RSA Security LLC
• TPSCO LLC
• SAP SE
• Shell International B.V.
• Sphera Solutions, Inc.
• TenForce
• Cura Global GRC Solutions PTE LTD