Integrated Risk Management Software Market Size, Share & Trends Analysis Report By Deployment mode (On-Premises, Cloud), By Software Type (Enterprise Risk Management Software, Financial Risk Management Software, Integrated Risk Management Software, Application Risk Management Software, Market Risk Management Software, Credit Risk Management Software, Information technology Risk Management Software, Quantitative Risk Management Software, Project Risk Management Software), By Industry (BFSI, Government, IT and Telecom, Healthcare, Manufacturing, Others), By Organization Size (SMEs, Large Enterprises) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global integrated risk management software market size was valued at USD 10.9 billion in 2023 and is projected to reach USD 12.5 billion by 2032, registering a CAGR of 15.1% during the forecast period (2024-2032). Rising cybercrime, government restrictions, and IT and telecom sector investment in new technologies drive Integrated Risk Management Software market growth.

Integrated Risk Management (IRM) Software is a comprehensive solution that helps organizations identify, assess, and manage various risks throughout their operations. This software provides a centralized platform for businesses to take a comprehensive approach to risk management, including compliance, cybersecurity, operational risks, strategic risks, and more. Risk assessment, risk monitoring, incident management, policy management, and reporting are some critical features of Integrated Risk Management software. The goal is to provide decision-makers with a unified and real-time view of the organization's risk landscape, allowing them to strategically make more informed decisions and plans. 

Integrated Risk Management (IRM) software helps organizations in various industries identify, assess, and mitigate risks ranging from compliance and cybersecurity threats to strategic and operational challenges. With a focus on enterprise risk management, the market is seeing steady adoption, driven by the need to navigate global uncertainty and ensure business resilience. The ongoing integration of advanced technologies such as artificial intelligence and machine learning improves the capabilities of IRM software, providing organizations with proactive insights and tools to manage risks and foster long-term success effectively.

Highlights

Cloud accounts for the largest share of the market based on deployment mode.

Enterprise Risk Management Software generates the highest revenue share by type of software.

The government influenced the market growth based on the industry.

Market Dynamics

Global integrated risk management software market drivers:

Increasing cybersecurity threats

With the increasing frequency and sophistication of cyber threats, organizations must fortify their cybersecurity defenses. Integrated Risk Management (IRM) Software is vital because it provides tools and features addressing various cybersecurity risk management aspects. Cybersecurity Ventures predicts cybercrime will cost the world USD 8 trillion by 2023. This equates to USD 667 billion per month, USD 154 billion per week, USD 21.9 billion per day, USD 913 million per hour, USD 15.2 million per minute, and USD 255,000 per second. In 2023, the global average data breach cost hit a new high of USD4.45 million. This figure represents a 15% increase in the past three years.

Furthermore, according to Cyberint, 2023 was a record year for ransomware attacks, with a 55.5% increase and 4,368 victims worldwide. 10% of organizations worldwide were targeted by an attempted ransomware attack in 2023, a significant increase from 2022. Integrated Risk Management (IRM) software includes threat intelligence feeds, allowing organizations to stay on top of evolving cybersecurity threats. It helps to identify the tactics, techniques, and procedures (TTPs) used by threat actors, which improves proactive threat mitigation.

Moreover, organizations that use IRM solutions for cybersecurity risk management are better equipped to combat cyber threats, protect sensitive data, and ensure business continuity. Potential breaches are mitigated, resulting in reduced financial losses and reputational damage. As cyber threats become more complex, the Integrated Risk Management Software Market trend is expected to evolve to include advanced functionalities. Integrating artificial intelligence and machine learning will be critical in predictive threat analytics, allowing organizations to anticipate and effectively respond to emerging cybersecurity challenges.

Global integrated risk management software market restraints:

Complex implementation and integration

Implementing and integrating Integrated Risk Management (IRM) Software can be difficult due to the complexity of enterprise systems, diverse data sources, and the need for seamless collaboration across departments. The complexity of the integration process may cause delays and require significant resources. The cost of implementing IRM software varies according to your needs. A dedicated ServiceNow implementation costs 2-3 times as much as a license. The base license for a dedicated instance could cost around USD 50,000 plus implementation fees. 

Additionally, according to a Gartner survey, the complexity of integrating risk management solutions is one of the top challenges organizations face. In its report for the year 2021, Gartner states that "Organizations find it challenging to integrate risk management solutions with other GRC (Governance, Risk Management, and Compliance) solutions and adjacent technologies." The complexity of implementation and integration can result in longer project timelines, higher costs, and potential disruptions to ongoing business operations. Organizations may need help to achieve a unified view of risk across the enterprise if integration issues persist, limiting the effectiveness of the IRM solution.

Global integrated risk management software market opportunity:

Increasing emphasis on esg (environmental, social, governance) risk management

The increased global emphasis on sustainability, responsible business practices, and corporate governance has created significant opportunities for Integrated Risk Management (IRM) Software to address Environmental, Social, and Governance (ESG) risks. Organizations recognize the need for comprehensive solutions that allow them to assess, monitor, and manage environmental, social, and governance risks. According to a Global Sustainable Investment Alliance (GSIA) report, global sustainable investment assets will be worth USD30.3 trillion by November 2023. According to GSIA data, the value of sustainable investments in Europe, Canada, Japan, Australia, and New Zealand has risen from USD 18.2 trillion to USD 21.9 trillion in recent years. 

Since 2020, 2,839 companies have used SASB Standards to report sustainability information to markets as of July 2023. In 2022, 2,231 companies from 66 jurisdictions aligned their reporting with the SASB Standards, up 60% from the previous year. This reflects leading organizations' widespread adoption of ESG reporting and risk management practices. As a result, ESG-specific IRM software allows organizations to identify emerging ESG-related risks such as climate change regulations, supply chain disruptions, and social license-to-operate concerns. Organizations that integrate ESG considerations into risk management frameworks can increase stakeholder trust, strengthen brand reputation, and gain a competitive advantage in sustainability-focused markets.

Regional Analysis

North america dominates the global market

The global integrated risk management software market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global integrated risk management software market shareholder and is estimated to grow at a CAGR of 15.7% over the forecast period. The growth is attributed to the healthcare industry's increasing digitization. The growing use of electronic medical records, which creates opportunities for cybersecurity risk, patient theft, and extortion through data encryption and breaches, has increased demand for integrated risk management. Furthermore, integrated risk management software provides solutions for the healthcare industry, including incident management, patient feedback, reporting, and workflow management. Again, increased expenditure on healthcare infrastructure by developed countries such as Canada and the United States creates opportunities for market growth. For example, the Canadian Institute for Health Information (CIHI) predicts that healthcare spending in Canada will reach USD 344 billion in 2023, or USD 8,740 per capita. This represents a 2.8% increase over 2022, when health spending grew by only 1.5%. 

Additionally, financial institutions in the United States must adhere to regulations such as Dodd-Frank and Sarbanes-Oxley. IRM Software enables them to navigate complex regulatory landscapes, ensuring compliance and avoiding penalties. Furthermore, in 2023, 66% of organizations reported being targeted by ransomware, with an average ransom payment of USD 1,542,333. Ransomware attackers target high-profile institutions and critical infrastructure, such as hospitals, schools, and government agencies. Furthermore, it is estimated that there will be 800,000 cyberattacks annually by 2023, which is expected to rise annually.

Asia-Pacific is anticipated to exhibit a CAGR of 16.3% over the forecast period. The growth is driven by increased investment in healthcare, telecommunications, and manufacturing from developing economies such as China, Japan, and India. Furthermore, the region's increasing adoption of social media platforms and internet connectivity makes it easier to implement integrated risk management.

Furthermore, the increasing adoption of emerging technology in the region, such as the 5G network, which is considered costly and poses a risk to sensitive data, is one factor driving the market growth. The widespread use of virtual communication, particularly during the COVID-19 pandemic, has paved the way for security threats to organizations' internal networks, compliance, and cyber risks, creating a demand for integrated risk management software.

The European Integrated Risk Management (IRM) Software market is expanding rapidly due to various factors, including increased demand for risk management solutions from regional organizations. The market is driven by the need to comply with strict regulations, cut operational costs, and increase efficiency. Multinational corporations operating in Europe benefit from IRM software facilitating cross-border risk management. It enables a standardized risk assessment and reporting approach, ensuring consistency and compliance across multiple regulatory environments. Siemens employs an integrated risk management (ERM) solution known as Siemens Gamesa Group. The ERM framework links Siemens' processes to its financial reporting and internal control processes. 

In addition, with the rise of cyber threats, European organizations have prioritized cybersecurity risk management. IRM software with advanced cybersecurity modules assists in identifying vulnerabilities, monitoring threats, and responding effectively to cyber incidents. Cyber attacks in Europe increased in 2023. In December 2023, governance. EU reported 204 publicly disclosed cyber-attacks in Europe, representing a 47% increase over November 2023. 

Segmental Analysis

The global integrated risk management software market is segmented based on deployment mode, industry, and type of software.

The deployment mode is further segmented into On-Premises and Cloud.

Cloud accounts for the largest share of the market.

Cloud

The cloud segment has a larger market share and is expected to grow over the forecast period. Cloud deployment is ideal for organizations that want agility, cost-effectiveness, and automatic software updates. It allows for faster implementation because users can use pre-configured environments without requiring extensive on-premises infrastructure. The cloud's pay-as-you-go pricing model provides additional flexibility, allowing organizations to scale their usage based on demand. Additionally, cloud solutions frequently include built-in security and compliance features. The growth is attributed to SMEs' increasing adoption of infrastructure-free solutions. According to IDC, SMEs account for approximately 73% of global enterprises. This drives up demand for the cloud segment among SMEs. Furthermore, the cloud segment's broad offering includes 24/7 services, remote working, and high security and storage services, all driving market growth.

On-Premises

On-premises deployment is installing and operating Integrated Risk Management (IRM) Software within an organization's physical infrastructure. This deployment model places the software on the organization's servers and computing infrastructure, providing greater control over data, security, and customization. On-premises solutions are typically appropriate for organizations with specific security and compliance requirements because they have direct control and management over the entire software environment. However, it may necessitate a significant initial investment and ongoing maintenance.

Based on the type of software, the market is fragmented into Enterprise risk management software, financial risk management software, Integrated risk management software, Application risk management software, Market risk management software, Credit risk management software, Information technology risk management software, Quantitative risk management software, and Project risk management software.

Enterprise Risk Management Software generates the highest revenue share.

Enterprise Risk Management Software

Enterprise Risk Management (ERM) software is created to assist organizations in recognizing, evaluating, and controlling risks throughout the entire enterprise. It offers a comprehensive risk perspective by combining different risk areas, allowing for strategic decision-making to improve overall business resilience.

Financial Risk Management Software

Financial risk management software is designed to reduce risks related to financial operations, including market volatility, credit risk, liquidity risk, and interest rate risk. It helps financial institutions and organizations improve financial strategies while protecting against potential financial losses.

The market can be further bifurcated by industry into BFSI, Government, IT and Telecom, Healthcare, and Manufacturing.

The government influenced the market growth.

Government

The government has a higher CAGR than other segments and is projected to grow during the forecast period. The government faces many risks, including cybersecurity threats and geopolitical uncertainties. Risk management software for the government aims to improve security, regulatory compliance, and overall governance. It addresses public services, information security, and policy implementation risks. It also helps to manage financial risks, ensure transparency, and optimize resource allocation in governmental activities. The growth is attributed to an increased reliance on technology. This technological dependency has increased cyber-attacks, raising the demand for integrated risk management software to protect sensitive data.

Furthermore, the government's increasing initiatives to promote digitization across all industry verticals create a demand for integrated risk management. For example, the Indian government has launched several initiatives, such as Digital India and smart city projects, highlighting the importance of integrated risk management. 

BFSI

The BFSI sector, which includes banks, financial institutions, and insurance companies, faces various risks, including market fluctuations, credit risks, and regulatory compliance issues. This sector's risk management software focuses on financial stability, investment strategy optimization, and regulatory compliance. It is critical to ensure the integrity of financial operations, protect against fraud, and manage the complexities of lending and investing.

Impact of covid-19

The impact of COVID-19 has a devastating effect on all industry verticals globally. The market of integrated risk management software has witnessed a slight surge amid pandemic COVID-19. The growth is attributed to increasing cyber-attack activities during pandemic COVID-19. According to a McAfee report, cyber attacks surge to approximately 605% amid pandemic COVID-19. This enables increasing demand for integrated risk management to protect, detect, and improve sensitive data risk.

Moreover, integrated risk management software helps enterprises in critical decision making and has an in-depth analysis of crisis management. Furthermore, key players have launched integrated risk management to offer a risk management platform to several enterprises to deal with crisis management amid pandemic COVID-19. For instance, in October 2020, MetricStream has launched the M7 integrated risk platform that helps enterprises adopt intelligent, agile, and simple approaches to deal with changing workforce, cybersecurity, and risk during pandemic COVID-19.

Recent Developments

• December 2023- NAVEX, the global leader in integrated risk and compliance management software, announced the release of its advanced data intelligence technology on the NAVEX One platform. Compliance and risk experts may now benefit from increased security and consistency when gathering, analyzing, and managing data in the cloud, assuring a strong and dependable approach to governance, risk, and compliance.
• September 2023- LogicGate launched a comprehensive SEC cyber compliance solution to help organizations prepare for upcoming regulatory changes.