19 February 2018
visit www.ebaday.com

Risk spending consuming bigger share of IT budgets - IDC

15 May 2014  |  7507 views  |  0 Risk on chalkboard

Spending on risk management by capital markets firms is expected to consume one-quarter of IT budgets by 2018, according to forecasts by IDC Financial Insights.

Globally, the analyst house expects expenditure on risk information technologies and services to grow to $79.2 billion in 2015 and $97.3 billion by 2018, representing a 7.2% compound annual growth rate.

As a percentage of total IT spending, which is forecast to crest $530 billion by 2018, investments in risk technologies will account for an average of 17.1% of overall IT spending in 2015 and growing to 18.2% of total spending by 2018.
Business sectors with the highest growth rates are compliance and internal controls, credit risk, and information/cybersecurity.

The capital markets sector has the greatest percentage of overall IT spending allocated to risk information technology and services, reflecting regulatory compliance requirements and IT modernisation trends. For 2015, the percentage of overall IT spending dedicated to risk and compliance is 22.2%, growing to 24.2%.

Michael Versace, global research director, IDC Financial Insights, comments: "Growth in risk management investments continues to lead all functional areas in terms of dollars allocated to hardware, software, and services that run the financial markets. With growth continuing to increase, firms must place their risk functions squarely in the middle of IT optimisation initiatives and require them to work across compliance, treasury, finance, operations, product, and IT disciplines and towards universal data management and integration standards, system capabilities, talent and metrics that improve risk-based decision making at a line of business and enterprise level."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

IT proves top spending priority for UK FS industry

IT proves top spending priority for UK FS industry

31 March 2014  |  6626 views  |  0 comments | 15 tweets | 9 linkedin
Financial markets IT spending to hit $100bn as credit crunch nears end

Financial markets IT spending to hit $100bn as credit crunch nears end

19 March 2014  |  6872 views  |  0 comments | 13 tweets | 7 linkedin
Banks and capital markets firms to boost compliance spending by 10% - Accenture

Banks and capital markets firms to boost compliance spending by 10% - Accenture

03 March 2014  |  7205 views  |  0 comments | 4 tweets | 9 linkedin
Global bank IT spending on the rise as European market recovers

Global bank IT spending on the rise as European market recovers

11 February 2014  |  7203 views  |  0 comments | 15 tweets | 11 linkedin
North American bank IT spending to hit nearly $60 billion in 2014

North American bank IT spending to hit nearly $60 billion in 2014

24 January 2014  |  8268 views  |  0 comments | 17 tweets | 14 linkedin
Risk IT spending continues upwards trend - Chartis

Risk IT spending continues upwards trend - Chartis

08 November 2013  |  6977 views  |  0 comments | 6 tweets | 7 linkedin
JP Morgan ramps up compliance and controls IT spending

JP Morgan ramps up compliance and controls IT spending

18 September 2013  |  8630 views  |  0 comments | 5 tweets | 10 linkedin

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comvisit http://info.nice.comvisit www.swift.com/your-needs/instant-payments

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11123 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
8629 views comments | 15 tweets | 13 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8599 views comments | 15 tweets | 43 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8552 views 10 comments | 21 tweets | 26 linkedin

Featured job

Basic c. EUR 90K OTE c. EUR 180K plus full bene...
Paris (preferred) or London

Find your next job