This week, we kicked-off a major research effort to explore current innovations in the rapidly expanding integrated risk management (IRM) market. This exploration includes a review of current customer case stories from over 40 IRM technology providers that highlight the innovative uses of their products. The culmination of the review effort will be our inaugural “Emerging Technologies: Tech Innovators in IRM, 2021” report slated to publish in late June.
Given that Gartner forecasts double digit growth (12.6%) for the IRM technology market in 2021, the nature of these innovative product uses will span 10 use case domains (see figure below). Two of these use case domains – ESG and privacy – are additions to Gartner’s 2021 coverage of the IRM technology market. These additions are reflective of Gartner’s client priorities, especially at the senior executive and CEO level. With the increased need to better understand how ESG and privacy risks may impact their products and services – both from an operational and regulatory perspective – business leaders need an integrated view of risk.
In fact, Gartner recently announced that more than half of CEOs currently report facing two long-term business transformations at the same time: digital business and sustainability. This represents a great opportunity for organizations to utilize risk management technology (RiskTech) to bridge the gap between these seemingly disconnected transformation efforts. With an integrated risk view, Gartner advises the use of RiskTech to identify material operational risks. For example, RiskTech monitoring of the Internet of Things ultimately can reduce water leakage, warn employees of danger, and reduce food and packaging waste by monitoring temperature. However, the key to these benefits lies in the integration of RiskTech via IRM.
More than half of CEOs report facing two long-term business transformations at the same time: digital business and sustainability
Another area requiring IRM innovation is the rapidly expanding use of telemedicine resulting from the global pandemic. Healthcare providers have pivoted quickly to telemedicine to reach their customers (patients) via an entirely new set of digital services. These new telemedicine digital services present not only new privacy risks as patient data is shared across technology assets, but also new operational risks arising from misdiagnosis, patient harm and liability. A newly published report by global insurer Beazley reports that while cyber is the top risk for telemedicine, the time and cost to remediate associated regulatory and operational risk is the top risk consequence feared (see figure below). Again, an integrated view of risk is needed to alleviate these concerns.
These are just a few examples of the rising need for innovation in the IRM market. Stay tuned for more insights on tech innovation in Gartner’s upcoming IRM tech innovators report and my additional posts on the Gartner Blog Network.