Why Enterprise Governance, Risk And Compliance has been a bust

The global enterprise governance, risk and compliance market size is expected to reach USD 88.48 billion by 2027, according to a new report by Grand View Research, Inc. It is projected to exhibit a CAGR of 14.0% over the forecast period. The need for adherence to compliance across highly scrutinized industries such as BFSI, It and telecom, and oil and gas has necessitated the integration of the enterprise governance, risk & compliance (EGRC) solution. Implementation of GRC solution helps companies avoid financial repercussions and loss of face value among the marketers. Moreover, the tedious task of managing audit, risk, compliance, policy, and security breach is driving the demand for EGRC across enterprises.

In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.

SAP SE; MetricStream Inc.; Thomson Reuters; Wolters Kluwer; IBM; Microsoft; Oracle; SAS Institute; Thomson Reuters; Wolters Kluwer; Dell EMC; FIS; MetricStream, Software AG; BWise; SAI Global; ProcessGene; LogicManager; NAVEX Global; Ideagen; Alyne; and MEGA International are some of the leading vendors operating in the market.

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Enterprise Governance, Risk and Compliance (EGRC) Market

•          The global enterprise governance, risk and compliance market is anticipated to be worth USD 88.48 billion by the year 2027, expanding at a substantial CAGR of 14% during this period, according to a recent report by Grand View Research.
•          In a broader sense, governance, risk and compliance refers to the organizational strategy for managing the issues of corporate governance, enterprise risk management (ERM) and corporate compliance with respect to regulatory requirements. An EGRC strategy helps in integrating regulation-related IT operations into a single platform, which enables administrators to enforce organizational policies through proper monitoring and measurement of risk exposure.
•          Business organizations are expected to demand substantial requirements for governance, risk and compliance management at an enterprise level due to changing business scenario, security need, and external reporting obligation in the coming years, which is expected to boost the growth of the EGRC market.
•          According to data from the Disaster Recovery Journal, 2020, even though 62% organizations experienced critical risk events from 2016-2020, only 36% have a formal enterprise risk management (ERM) program in place. Moreover, 44% of the organizations planned to implement or upgrade their existing GRC setup or risk management software.
•          The presence of various regulations such as Occupational Safety and Health Administration (OSHA), Health Insurance Portability and Accountability (HIPAA), GDPR, Foreign Account Tax Compliance Act (FATCA), and Payment Card Industry Data Security Standard (PCI-DSS), and the requirement to comply with them, has resulted in the rapid rise in demand for EGRC market.
•          In terms of component, the market is segmented into software and services. The software segment dominated the market on account of presence of integrated solutions for tackling different regulations, which has decreased the cost of software ownership. The integration of IoT and analytics by auditing executives, as well as reducing costs of Internet and Wi-Fi, are expected to fuel growth of the EGRC market in the coming years.
•          In terms of software, the market is segmented into risk management, audit management, compliance management, policy management and incident management, wherein risk management led the market, followed by audit management. Risk management helps companies to avoid penalties by following regulations by official bodies, while audit management assists organizations by giving them access to previous assessments, while helping them manage current or due ones.
•          In terms of services, the market is segmented into integration, consulting and support, with the consulting segment emerging as the largest one in 2020. The presence of IoT and Big Data in the EGRC space is expected to offer strong support to professionals in making strong choices on digital business, with major organizations such as SAP, Bwise and Wolters Kluwer providing expert solutions with their consultancy portfolio.
•          Based on enterprise type, the market was dominated by the large enterprises segment in 2020, as these organizations have invested their focus on building transparency to mitigate threats, while the small and medium enterprise segment is also expected to grow at a substantial rate during this period, on account of the rising government regulations across all verticals.
•          In terms of verticals, the BFSI segment dominated the market in 2020, as banks and financial institutions have moved towards the use of analytics to detect any entity-level linkages, and to monitor the suspicious activities of different linked accounts used for laundering activities. The telecom and IT sector, on the other hand, is expected to show fastest growth over the coming years, as they comply with various regulations such as GDPR, HIPPA, Sarbanes-Oxley Act (SOX), Federal Information Security Management Act (FISMA), and PCI-DSS, regarding data collection and storage.

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Recent Developments

•          In March 2020, MetricStream announced that it was expanding its presence in Asia Pacific through investments in Australia and New Zealand, which comes on the back of their continued growth in Europe and UK. The company team, based in Sydney, will partner with customers to build their GRC strategy utilizing the state-of-the-art, cloud-native M7 platform and suite of GRC solutions, so as to enhance business performance through identification of risks and responsibilities.
•          In February 2020, Wolters Kluwer announced that it had completed the acquisition of CGE Risk Management Solutions, a leading risk management software provider, including the industry-standard BowTieXP solution. This development is expected to extend the presence of Wolters Kluwer in the operational risk management software market.
•          In May 2020, IBM joined forces with Thomson Reuters to announce a new solution that helps professionals understand the changing nature of regulations and help them in making timely and informed decisions, thus helping organizations effectively manage their daily compliance burden.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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Mrudula Joined: February 5th, 2020