Risk analytics primarily help organizations in knowing the existence of risk within various business functions. It facilitates organizations to accurately define, recognize and manage their risk. Need for risk analytics is expected to increase across business processes. New developments in the risk analytics are transforming the market and enhancing its capability. A new improvement, for instance, real-time risk analytics, is an advanced version of conventional risk analytics methods. Real time risk analytics solution deals with processing, examining and calculating risk on a real time basis. There are numerous ways in which banks of all types of financial organizations are applying analytics to better alleviate and manage risk. For example, asset management firms, hedge funds and investment banks use risk analytics for adjusting their operating principles to align with market and investment shifts.
The integration of risk modeling techniques into analytics allows organizations to know probable fraud, intensity of the fraud and prioritize the investigations based on impact rate of each fraud. Fraud detection analytics enable government organizations to identify fraud and optimize the level of risk. Risk analytics check user behavior, historical fraud data and current and past transactions to estimate the risk.
The risk analytics market is segmented by solutions, services, applications and industry verticals. Different types of risk analytics solutions available in the market include extract, risk calculation engines, transform and load, scorecard and visualization tools, dashboard analytics, risk reporting and governance risk and compliance. Various services offered by risk analytics comprises of support and maintenance service, consulting service and integration service. Risk analytics has widespread applications such as fraud detection and prevention, credit risk management, liquidity risk analysis, real time situational awareness, industry benchmarking and validation and product portfolio management. Different industry using risk analytics include banking, financial services, insurance, consumer goods and retail, government, healthcare, telecommunication and information technology (IT), manufacturing, transportation and logistics, energy and utilities, media and entertainment and others.
Increasing need to tackle verticals specific challenges and growing focus on market and competitive intelligence is driving the risk analytics market. Risk analytics is increasingly being popular among corporate in addition to the financial services sector. Financial organizations are expected to continue to use risk analytics owing to regulatory requirements. Emergence of real time and on-demand risk analytics is fuelling the risk analytics market growth. Technology is being the key enabler for providing real time market and trading data to the companies offering risk on-demand analytics services and assisting them to serve as per the market volatility. Service providers are moving ahead for designing dynamically configurable risk analytics platform for customers with lack of time and capital investments for customized offerings. Low level of knowledge and regulatory compliances are the primary challenges in the risk analytics market. These challenges are hampering the risk analytics market growth.
Prominent players in the risk analytics market include Oracle India Pvt. Ltd., International Business Machines Corporation, SAS Institute Inc., Microsoft Corporation and SAP A.G. Cisco Systems, Inc., Teradata Corporation and TIBCO Software Inc. among others.
Key geographies evaluated in this report are:
Key features of this report
The organizations on a global level are trending towards risk analytics for its benefits of analyzing business risks on time, aiding the organizations in creating a robust plan for effectively dealing with these risks. Risk analytics is evolving with technological advancements and the capacity to analyze the risk has increased significantly.
Real-Time Analytics Gains Preference
The demand for real-time risk analytics has substantially augmented for their better examining, processing, and calculating risks. Different organizations are utilizing these risks analytics differently. For instance, investment banks and other financial institutions are roping in these analytics tools to improve their operating principles and bring them at par with the market.
Fraud Detection Witnesses High Demand
Fraud detection analysis is witnessing a steep hike in demand as a risk analytics segment. Organizations are hiring such risk modeling techniques to identify possible frauds and optimize risks. Government organizations have surfaced as prominent end-user of such risk analysis tools. Risk analytics is used by organizations to keep a check on historical data fraud and user behavior. These tools also keep a tab on the previous and current transactions to assess the involvement of any risk.
The risk analytics market is primarily driven by the challenges arising in different verticals. The corporate and financial sectors are generating major demand in the market for risk analytics. Owing to the increasing regulatory requirements, the financial sector is projected to continue generating the demand for these analytics services during the forecast period. The on-demand risk analytics is garnering a major demand in the market.
Though the market is progressing at a rapid pace, it is facing challenges in terms of low awareness. This slows down the adoption rate of such services, creating a roadblock in the robust market growth. Stringent regulatory compliances for these risk analytics tools are hindering the introduction of new products in the market, challenging the market expansion.
Regional Competition Scenario
North America is projected to lead the global market during the forecast period with augmenting developments in IT sector and the presence of large enterprises. The increasing competitiveness in the market along with the fluctuation in the currency is estimated to have a huge impact on the market growth trajectory. Asia Pacific is projected to exhibit rapid growth in the coming years. The developing economies are forecasted to create substantial revenue prospects for the market players by the end of the forecast period.
Prominent market players are introducing new technologies for risk analytics, enhancing the analytical properties of their tools. Assessing the wide opportunities, the companies are offering on-demand risk analytics services to enhance their market presence. The market participants are developing solutions that can be dynamically configured by the user as per the availability of time and expenditure. Customized offerings have opened new doors of possibilities for the market players. Established players profiled in the global risk analytics market include Teradata Corporation, Microsoft Corporation, International Business Machines Corporation, Teradata Corporation, SAS Institute Inc., SAP A.G. Cisco Systems, Inc., and SAS Institute Inc.