2020 marks Gartner’s fifth year of integrated risk management (IRM) technology coverage and the market continues to grow at a rapid pace. In fact, the spectrum of IRM technology solutions is increasing due to digital transformation efforts in companies of all sizes. As a result, the IRM technology and services market forecast for 2020 is $7.3 billion with projected growth to $9.3 billion by 2023 (see figure below). Digital transformation is rooted in the development of new digital products and services designed to propel a company’s future growth. These new digital products and services create a host of new risks that require IRM technology.
Gartner’s most recent annual CEO survey highlights the growing need for IRM technology. CEOs and senior business executives view growth as the top business priority for their organizations (see “2019 CEO Survey: The Year of Challenged Growth”). With limited avenues for growth in traditional, organic ways, businesses are increasingly turning to digital to grow revenue and scale to reach a wider spectrum of customers. In fact, the survey reported that 82% of CEOs have a management initiative or transformation program to make the business more digital. In addition, an increasing trend toward digital as a top priority can be found in analyzing our annual CEO survey over the past eight years. The percentage of survey respondents who used the word “digital” in their top five business priorities steadily increased from 2.1% in 2012 to 18.6% in 2019.
As a result, IRM technology is increasingly being utilized for new use cases in digital risk, quality risk and environmental, health & safety (EH&S) risk. IRM’s integrated view of strategic, operational and technology risk impacts is ideally suited to provide risk quantification & analytics for these new use case domains as well a range of other domains (see figure below).
I’m looking forward to working with IRM technology & service providers this year to better position them to meet the growing customer demand in this dynamic marketplace. If you want to learn more about IRM and the evolving digital risk management use case, please read our latest research “Emerging Technology Analysis: Digital Risk Management”.