Globally from 2006 through 2008, financial services institutions' (FSIs') IT spending on risk management grew at a compound annual growth rate (CAGR) of 5.8% to $24.65 billion annually.
From 2009 through 2012, FSIs' IT spending on risk management will grow at a 6.15% CAGR to $29.48 billion annually, dramatically outpacing the 3.1% CAGR of total IT spending.
Risk management will represent an increasing allocation of FSIs' total global IT spending, rising from 6.5% in 2009 to almost 7% by 2012.
Differences in global regulatory requirements will add 1% to 2% to FSIs' global risk management costs, an increase that vendors and the institutions can ameliorate by focusing on data quality, discipline, and efficiency.
Integrated risk management will attract new IT spending, supplanting past emphasis on risk taking in product platforms in the United States and Basel II compliance implementations in the United Kingdom and Europe.
Although Asia lags other regions in risk management, Asian FSIs seeking westward expansion will be driven by regulatory requirements and by the hard lessons learned in the West.
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