Risk technology spending to grow

risk technology spending across the banking, capital markets and insurance sectors, Market Watch reports.

The newest research report, entitled: “Worldwide Risk Technology Spending - 2011 Analysis and Forecasts”, provides a uniquely comprehensive, fact-based view of how to categorise technology spending throughout seven risk sub-markets, 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.

According to this new research, IDC Financial Insights forecasts worldwide IT spending pertaining to risk functions (as defined in the report) will reach over $74 billion by 2015. In addition, 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 several key drivers that are fuelling growth in risk-related technology and services investments, including regulatory uncertainty and compliance demands, mandates to improve overall corporate governance and financial performance across the financial enterprise, and the need to modernise and protect critical risk management infrastructure, TechJournal says.

The report, which follows an earlier report, “Business Strategy: Enterprise Risk Management Domains, Sub-domains, and Markets”, outlines the taxonomies and definitions for spending analysis, and can be used by risk managers and IT executives as a way to organise their own internal analysis of risk management assets and identity gaps and areas where new investments should be considered.