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Risk Tech Spending to Reach $79 Billion in 2015

A report from IDC Financial Insights also predicts spending on risk will reach 17 percent of overall IT spending.

Worldwide spending on risk information technologies will reach $79.2 billion in 2015 and $97.3 billion by 2018, predicts a new report from IDC Financial Insights.

The firm further predicts that risk management and regulatory compliance investments will not be a safe-haven from the demand for financial performance and operational efficiency, and in fact demands today will call for risk investments to contribute more to financial performance and to the efficient operation of the institution.

As a percentage of total IT spending, which is forecast to exceed $530 billion by 2018, the risk market in financial services will account for an average of 17.1 percent of overall IT spending in 2015 and growing to 18.2 percent of total spending by 2018, as risk management technologies, services, and solutions continue to participate in a growing market that is core to business strategies across the banking, capital markets, and insurance sectors, IDC said.

The capital markets sector of the financial services market has the greatest percentage of overall IT spending allocated to risk information technology and services, the report found. For 2015, the percentage of overall IT spending dedicated to risk information technology and services in that sector is 22.2 percent, growing to 24.2 percent, which is representative of in-sector regulatory compliance and IT modernization trends.

[Related Content: 4 Ways to Mitigate Risk in Banking]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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Byurcan
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Byurcan,
User Rank: Author
5/15/2014 | 4:35:55 PM
re: Risk Tech Spending to Reach $79 Billion in 2015
I support and and all Seinfeld references
Nathan Golia
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Nathan Golia,
User Rank: Author
5/14/2014 | 8:01:05 PM
re: Risk Tech Spending to Reach $79 Billion in 2015
As George Costanza taught us, "in order to manage risk, we must first understand risk." For financial services companies, this is probably even more important than it was to the fictional New York Yankees.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
5/12/2014 | 9:07:37 PM
re: Risk Tech Spending to Reach $79 Billion in 2015
I'm sure a lot of this is being driven by change in both regulation and the cyber security landscape creating new risk challenges for financial services organizations. Throwing money at those challenges won't be enough though, there's going to have to be a big focus on training employees and leveraging outside expertise.
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