While most financial institutions do not have a comprehensive or well-formulated strategy, most will increase risk technology expenditures in 2010, according to the latest findings from Chartis Research.
RiskTech100TM - a report covering the latest global rankings of the top 100 risk technology vendors and based on the key results of a survey of 824 risk technology buyers and end-users - reveals that 57% of respondents believe that their firms' approach to enterprise risk management can be characterized as
"a set of tactical/reactive initiatives addressing specific gaps" (18%), or "a loose concept that is not fully defined with partial sponsorship from the board of directors" (29%), or "no current strategy or plans in place" (9%).
On a positive note, 66% of respondents expect to increase their risk technology expenditure by 10% or more in 2010.
"The growth in expenditure on risk technology is fuelled by increasing interest in corporate governance and risk-based regulation," comments Peyman Mestchian, Managing Partner at Chartis. "However, many risk technology buyers have learned the expensive lessons from Sarbanes-Oxley and Basel II and are looking for smarter, more integrated approaches to implementing risk management systems and breaking down the traditional silo-based approaches."
On the supply-side of the market, SAS, Algorithmics, SunGard, Oracle and Fiserv occupy the top five places in the RiskTech100TM rankings. Geographically, the list is dominated by the US with 47 firms, followed by the UK with 21.
"Risk technology vendors with a clear strategy for providing a 'one-stop-shop' are winning," comments Mestchian. "Technology vendors with point-solutions addressing a narrow set of problems will find it challenging to increase their market share".