Risk management is an increasingly complex subject, especially as the economic landscape diversifies and financial markets grow more volatile. To meet the growing demands of financial and consumer credit risk management
, organizations are beginning to leverage automated IT services to rein in risk exposure and mitigate rogue activities.
According to a report released this week by IDC Financial Insights, global IT spending related to risk management functions will surpass $74 billion by 2015. Growth in IT spending on risk strategies will also outpace the growth of overall IT spending in the financial services sector, topping 15 percent of total IT spending in finance next year. "With this research, our clients are telling us that we have filled a previously un-met market need - and we agree," said Michael Versace, global risk research director at IDC. "And although our macro-economic assumptions continue to point to downward pressure on overall IT spending in financial services, in our estimation, the risk technology market is large and still growing at a good clip." The surge in risk management investment reflects the growing role of the finance sector in the U.S. and European economies. With the proliferation of large-volume trading, the need to cap excessive risk is paramount.