The enterprise governance, risk, and compliance market (eGRC market) is forecasted to account for a CAGR of 12.5% from 2021 through 2026 – reveals a recent study.
Given the rising trend towards digitalization, businesses across industries operate in a complex and highly dynamic global ecosystem. As a result, managing the risk and compliance due to the impact of the alterations in the market is one of the significant challenges that a company often encounters.
Implementing 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.
An enterprise GRC helps firms anticipate, understand, as well as holistically control their risks. Hence, companies can balance risks and opportunities and make strategic business decisions effectively while responding successfully to the drastic changes appearing within and outside an organization.
Approximately 57% of the senior-level executives ranked “risk and compliance” as one of their top risk categories. Basically, this is where they feel least prepared to address unforeseen challenges.
In addition, the rising cyber threats among organizations owing to the increased digitalization and sharing of vast data globally have led to various cyber-attacks and online threats. Thus, cyber-security risk is one of the crucial drivers for rising eGRC software adoption.
In fact, the rising demand for efficiency in financial assessment and cost-saving tools is most likely to fuel market growth. However, the lack of awareness about the different benefits of eGRC, precisely within small and medium businesses, has hindered the overall market growth.
Furthermore, the constant changes in the company structures and the company’s code of conduct are likely to curb market expansion. For instance, only 36% of companies have an improved, formal enterprise risk management (ERM) program in place.
The risk management factor is expected to emerge as the most influential software category. Lately, organizations opt for risk management as it helps to avert breaches while ensuring that any risk associated with these enterprise activities is addressed and identified.
This needs to be done in a way that encourages the company’s goals. Some of the key findings from this research study are –
- Risk management is projected to account for the highest market share. It is in terms of overall revenue among other software solutions within the eGRC market.
- As indicated by the Risk Management Association, the most critical risk management difficulties in 2018 were operational risk (both cyber and third-party risks), credit, and regulatory compliance.
- There has been a visible increase in market expenditure in this time – owing to the data and security regulatory compliance.
- eGRC helps businesses manage risk across an enterprise and set up safeguards for those who are up against online threats.
Undoubtedly, with the exact mechanisms readily available to identify, estimate, manage, and foresee risks, the executive management can develop new regulations and policies. Additionally, they can institute procedures to minimize such risks as well as their impacts.