Through 2016, 75% of the chief risk officer’s time will be focused on risk data architectures, credit analytics, fraud and cyber security, and creating new risk efficiencies from 3rd Platform IT.
The IDC FutureScape: Worldwide Risk Management 2015 Predictions also finds that:
* Led in part by big data solutions, fraud and financial crimes analytics will set global financial institutions back $2,8-billion for software and services by 2016.
* 30% of top compliance functions introduce a technological means, business processes, and metrics to manage and minimize conduct failures.
* Institutions increase investments in risk culture through enterprise education by more than 15% in 2015.
* Industry clouds disrupt legacy risk operations and contribute to a 10% reduction in Know Your Customer (KYC) and other compliance costs by 2016.
* Virtually all CROs will be engaged in credit risk modernisation initiatives through 2016.
* By 2016, threat intelligence security services market will growth at a 20% compound annual growth rate (CAGR), with consulting services leading the growth.
* To meet the demand for convenience, 10% of mobile-initiated commerce will be biometrically secured by 2016 and password usage begins to show signs of decay.
* By 2017, with workable boundaries of regulation at state and federal levels, financial institutions find their role in crypto-currency clearing.
* Through 2016, operational risk spending will grow at an 8% CAGR, almost twice the average growth rate for all IT industry spending.
According to Michael Versace, global director for Risk and IT Strategy at IDC Insights: “There seems to be no end to above average growth rates in risk technology and service investments across all three financial services sectors, and all global regions. However, while the waves of regulation continue to pound against margins and profitability, solutions built on cloud, big data, and analytic platforms are offering more opportunities every month to scale and strengthen the CRO’s ability to mitigate risk, perfect risk taking, and contribute to growth and shareholder value.”
