The global operational risk management solution market size is expected to grow from US$ 1,656.4 million in 2021 to US$ 3,098.0 million by 2028; operational risk management solution market share is estimated to grow at a CAGR of 9.4% from 2021 to 2028.
In response to the COVID-19 pandemic, corporations have made changes to their operations by implementing flexible work schedules, enabling remote working, and enhancing the employee experience. The implementation of hybrid work models is seen as a more flexible, digital, and rewarding future for employees. According to an article published by GENESIS INTEGRATION, 55% of US workers desire a work pattern that permits a combination of remote and office work. The article's data also shows that more than two in five working adults (42%) are willing to trade some portion of their salary for greater flexibility at work. Additionally, 74% of the younger generation would prefer to work from home or split their time between home and the office. The increasing adoption of a potentially permanent hybrid workforce has resulted in a rise in operational risk management solutions due to an increase in cybersecurity attacks during remote working. Furthermore, businesses must address the growing risk of internal fraud. The Asia-Pacific region has seen an increase in employee fraud cases over the last year during the COVID-19 pandemic, according to an article by Risk Management Intelligence in October 2021. Some of the significant risks include procurement fraud, cash theft, and falsification of expense claims. Additionally, as business processes continue to transform in hybrid working environments, the demand for operational risk management solutions is increasing due to high risks. Internal controls and business continuity plans must be reassessed and audited to ensure that operational and process risks are appropriately identified and mitigated. Furthermore, with an increasing reliance on third-party service providers, including technology and business process outsourcing providers, organizations must strengthen their third-party risk management strategies. Thus, the growing implementation of a hybrid work culture is creating significant opportunities for the future growth of operational risk management solution industry players, as several risks such as cybersecurity, internal fraud, and business process risks increase.
The COVID-19 pandemic had a positive impact on the operational risk management solution market growth in 2020, as millions of employees shifted to remote work. This led to increased usage of third-party networks, digital platforms, and personal computing devices, resulting in increased risks of cyberattacks and malware. Online frauds, phishing attacks, denial of inventory, and ransomware attacks were also on the rise due to the surge in digital traffic. According to the Global DNS Threat report, in 2021, DNS attacks affected 79% of global organizations in 2020, with the top DNS attacks including DNS phishing, DNS malware, and DDoS attacks. Enterprises are now adopting advanced operational risk management solutions to detect and manage abnormal behavior in networks and mitigate cybercrime risks. The growth of the operational risk management solution market continued in 2021 and 2022, driven by the rising trend of hybrid work styles and the need to mitigate supply chain risks in the healthcare and pharmaceutical industries. Additionally, the digital transformation of businesses in various sectors such as BFSI and transportation & logistics is supporting the growth of the global operational risk management solution market.
Adapt IT Holdings Ltd; MetricStream, Inc.; RSA Security LLC; TPSCO LLC; SAP SE; Shell International B.V.; Sphera Solutions, Inc.; TenForce; and Cura Global GRC Solutions PTE LTD are a few key companies operating in the operational risk management solution market. The report comprises secondary research work on other companies that hold a significant operational risk management solution market share.
The market size of the operational risk management solution market has been determined using primary and secondary sources. The research process began with comprehensive secondary research using internal and external sources to gather qualitative and quantitative information related to the market. This process helped in gaining an overview and forecast for the operational risk management solution market, including all its regional segments. Additionally, multiple primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants, such as valuation experts, research analysts, and key opinion leaders. The purpose of these interviews was to validate the data and gain more analytical insights into the operational risk management solution market analysis.