The global market for risk management software is anticipated to expand at a CAGR of 18% during the forecast period of 2024 to 2032. The primary purpose of risk management software is to constantly monitor and manage the many compliance-related risks that an organization confronts. The primary objective of the software is to identify risk, mitigate its impact, and manage it efficiently. In addition, the multiple benefits of risk management software, such as effective decision-making, realistic expectations, escalation, and a focus on risk, are the lucrative elements driving market expansion.

Efforts of the Government in Supply Chain Management

Many nations' governments are concentrating on the improvement of supply chain management. As a result of the implementation of the government's policy, the Indian Logistics Industry has experienced substantial growth. In 2020, the government will implement the National Logistics Policy to facilitate the flow of commodities. In addition, the emergence of global pandemic disease has increased demand for Risk Management software to manage supply chain risks in the healthcare and pharmaceutical industries, and this is expected to continue to drive the market post-pandemic.

Integration of Innovative Technology

The incorporation of cutting-edge technology like artificial intelligence (AI) and machine learning (ML) into Risk Management software has the potential to expand the market and increase client value. AI-based Risk Management improved the efficiency of risk processing and can be used to streamline and automate procedures including load forecasting and vehicle scheduling. AI and ML can provide supply chain and logistics operations with benefits such as cost savings through decreased redundancies and risk mitigation, faster deliveries via more optimal routes, enhanced forecasting, and customer service. Logistics management and enterprise risk management are aided by the integration of new technology and Risk Management software. A rise in investments and acceptance of these technologies offer attractive potential for market expansion.

Increased adherence to rigorous government regulations

Governments have imposed different rules and regulations on various organizations for implementing enterprise risk management through a flexible, user-friendly information system, which enables businesses to evaluate, identify, analyze, and consider both opportunities and risks to protect corporate brands and create value. In addition, the expansion of risk management software is influenced by the many rules and regulations established by governments in various nations. For instance, the Singaporean government has implemented a new regulatory framework for financial benchmark manipulation that includes both civil and criminal remedies. In addition, according to a study conducted in China, the Chinese government deployed GRC (governance, risk management, and compliance management) solutions in enterprises to increase risk monitoring, segregation of duties (SOD) management reporting, and continuous control monitoring (CCM). In recent years, the market for risk management has been presented with a profitable potential as a result of the diverse rules enforced by governments in various countries.

Data Protection Problems to Challenge the Market Growth

Companies that embrace software for risk management confront security and privacy concerns. Businesses possess confidential data that must be safeguarded to prevent data breaches and cyberattacks. In comparison to on-premise deployment, cloud adoption raises security concerns because third parties retain company data and unauthorized individuals can access it. Increased acceptance of cloud-based deployment generates security issues that risk enterprise data protection and harm business standing, consequently impeding adoption. To overcome this obstacle, however, investments in cyber security software for data security are evaluated.

Demand Growth in Developing Economies to Create Immense Opportunities During the Forecast Period

Cyber-attacks, fraudulent assaults, money laundering, terrorist operations, and data theft pose a severe threat to developing economies. Hence, the adoption of risk management software has increased in developing economies. Moreover, the significant external foreign currency debt of many developing economies leaves them sensitive to fluctuations in interest rates as a result of international exchange rate fluctuations and currency attacks. This enhances risk management adoption in these nations. In addition, developing economies have boosted their expenditures on IT and digitization, which has led to an increase in various security problems, including data theft and cyberattacks. Consequently, risk management software aids in mitigating various threats, such as cyberattacks, financial fraud, and data theft, thereby creating a profitable business potential.

Risk Management Software Market Segment Analysis - By Deployment Type

In 2023, the cloud segment owned around 57% of the risk management software market. Cloud-based deployment enables industries to remain informed and up-to-date with dashboard warnings in real-time. With this setup, data from many sources may be synchronized seamlessly, as it enables easier communication and data sharing than on-premise. In addition, the simplicity of deployment and pay-per-use model has led to the widespread adoption of cloud-based deployment. The essential technology for regulated businesses such as banking and law will be blockchain. Blockchain technology enables the decentralized and distributed storage of data, removing the possibility of a single point of failure. Blockchain technology can detect if data manipulation has occurred. Venminder is the leading provider of solutions for third-party risk management. Round B fundraising raised $5 million for the company. MissionOG and Bain Capital Ventures contributed to the financing. The SaaS-based platform from Venminder is an ideal option for all important procedures, including contract administration, risk assessment, questionnaires,s and task management. This funding will be used to develop the company's compliance platform. The application of Artificial Intelligence (AI) in risk management will have a significant impact on how financial institutions handle risks. With the increased usage of AI and machine learning, it is predicted that risk managers will move their focus to analytics to prevent losses.

Study of Risk Management Software Market Segments by Industry Vertical

Transport & Logistics is anticipated to develop at a CAGR of 10.2% from 2024 to 2032, representing the segment with the highest growth rate in the Risk Management Software Market. In this industry, the adoption of Risk Management software for applications such as shipping history estimation, demand forecasting, and freight in transit is projected to drive market expansion. The expansion of the transport and logistics industry can be ascribed to the globalization of the supply chain and transport networks, which has resulted in supply chain risks such as lack of supplier visibility, significant subcontracting, natural disasters, and political upheaval. Excessive subcontracting may result in integrity-related issues, such as child or forced labor, dangerous working conditions, and illegal worker payment. These issues have prompted transport and logistics organizations to prioritize the implementation of Risk Management systems to examine risk or security assessment, failure mode and effects analysis, market conditions, and supply chain resilience risk mapping. In addition, several nations, including India, South Korea, and others, are concentrating on implementing Risk Management systems to detect, evaluate, and prioritize risks. The Indian government is taking substantial measures to support the logistics industry. In 2019, the Indian Ministry of Trade and Industry allocated $0.011k to the logistics sector for the development of initial infrastructure. This type of effort affords prospects for market expansion.

North America to Remain as the Global Leader

In 2023, North America dominated the Responsible Sourcing Software market with a 37% market share, followed by Europe and APAC due to its early embrace of modern digital technologies and substantial investments in their deployment. Risk Management software usage is driven by the presence of a high number of manufacturing units and huge retail chains. The Federal Electricity Regulatory Commission (FERC) of the United States established new obligatory dependability criteria for the safety of transportation and logistics equipment and to increase Risk Management in the industrial industries in 2018. The market in this region is driven by stringent rules in manufacturing industries and tight adherence to these standards owing to the impact of covid-19 in 2020.

Hybrid Strategy Model Adopted by Top Tier Companies to Enhance the Market Share

New technology launches, Acquisitions, Collaboration, and Research and Development (R&D) are the primary strategies employed by players in the Risk Management Software Market. SAP, Oracle, IBM, The AnyLogic Company, SAS Institute Inc, ServiceNow, RSA Security LLC, Thomson Reuters, Lockpath Inc, LogicManager Inc, and Other Notable Players are among the top 10 firms in Risk Management Software.

Acquisitions/New Technologies

• In September 2019, AEB released a software solution for risk assessment that is utilized in supply chain applications. Risk assessment software facilitates internet access for all businesses where global trade hazards may exist, including procurement, sales, and shipping. This program also ensures that all necessary information is gathered efficiently and automatically used for risk management.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Risk Management Software market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Risk Management Software market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Risk Management Software market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Risk Management Software market?
• Which is the largest regional market for Risk Management Software market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Risk Management Software market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Risk Management Software market worldwide?