Governance, Risk and Compliance Software Revenues to soar over next 4 years.
There is already a buoyant market for GRC (governance, risk and compliance) software, but it is now being predicted to rise to a whopping $12bn by 2021. That’s a rise of about 30%.
The forecast by International Data Corporation is being attributed to organisations looking for resolutions to meet the pressures from the changes in regulations, cybersecurity, third-party exposure, and general risk to reputation.
Regulatory compliance is perhaps the main area which is driving the demand for GRC software. This is because the regulatory environment, specifically corporate governance, risk and compliance is becoming increasingly complex. At the same time, the financial penalties for non-compliance, alongside the negative publicity, mean that mitigating this risk is now a board level issue. And boards are investing heavily.
Whilst this is happening, the responsibility for risk management is also being cascaded down throughout organisations. This has necessitated the need for more than just regulatory reporting software. There is now a real demand for user engagement, ease of use, and integration with other enterprise applications.
Vendors are now developing more intuitive platforms that can also be configured. These can often be integrating and tend to focus on user engagement through report automation, alerts, and mobile accessibility.
Additionally, the rise of cloud solutions is driving growth in the GRC market. GRC applications are now available more widespread and therefore SMEs and those in industries whose regulation is lighter have been able to access the software.
There are some who are even saying that this $12bn is conservative; that is presupposes that there will be no further developments, and therefore this is about maintaining the status quo.
One thing is for certain. GRC software is exceptionally important.
Taking a holistic view of risk and compliance is essential. Many organisations have identified this as a weakness and are finding great difficulty in achieving required standards. This is why many are turning to software development.