The enterprise governance, risk, and compliance market, also known as the eGRC market is anticipated to register a CAGR of 12.5% during the forecasted period of 2021 – 2026 – reveals a ResearchAndMarkets study.
In this digital era, enterprises operate in a complex as well as highly dynamic global ecosystem. Thus, managing the risk and compliance due to the impact of the alterations in the market is one of the major challenges that an organization faces.
Today, an enterprise GRC helps businesses anticipate, understand, and holistically control their risks. As a result, companies can balance risks and opportunities, make strategic business decisions effectively – while responding efficiently to the drastic changes happening within and outside of an enterprise.
Implementation of the stringent regulations and government mandates across industries and end-user verticals has triggered the need to adopt eGRC solutions. Experts say this could fulfil the need for audit, compliance, and risk management.
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Nearly 57% of the surveyed senior-level executives ranked “risk and compliance” as one of their top two risk categories. And this is where they feel least prepared to address sudden challenges.
In addition, the increased digitalization and sharing of vast data globally has led to rising cyber threats and attacks. Hence, the cyber-security risk is one of the critical drivers for increased eGRC software adoption.
In fact, the increasing demand for efficiency in financial assessment and cost-saving tools is expected to drive market growth. However, the lack of awareness regarding the different benefits of eGRC – precisely within small and medium companies has hindered the market growth.
Moreover, the constant changes in the organizational structures and the company’s code of conduct are most likely to curb market expansion. For instance, only 36% of companies have a formal enterprise risk management (ERM) program in place.
The risk management factor is expected to emerge as the major software category. Lately, enterprises opt for risk management as it helps to avert breaches while making sure that any risk associated with these activities of the enterprise is addressed and identified.
This demands to be done in a way that supports the company’s goals. Some principal highlights from the study are –
- Risk management is forecasted to account for the highest market share – this is in terms of overall revenue among other software solutions in the eGRC market.
- As per the Risk Management Association, the most critical risk management challenges in 2018 were the operational risk (both cyber and third-party risks), regulatory compliance, and credit.
- Currently, there has been a substantial increase in market expenditure – owing to stricter data and security regulatory compliance.
- eGRC helps businesses manage risk across an enterprise and set up safeguards for those who are against risks.
Clearly, with the exact mechanisms readily available to identify, measure, manage, and anticipate risks, the executive management can develop regulations and policies. Besides, they can institute procedures for minimizing the risks and their impacts.