Enterprise Governance, Risk and Compliance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Enterprise Governance, Risk and Compliance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The enterprise governance, risk, and compliance (eGRC) market are expected to register a CAGR of 12.5% in the forecast period (2021 - 2026). Organizations operate in a complex and highly dynamic global environment. Hence, managing risk and compliance due to the impact of the changes around is one of the biggest challenges an organization faces.

Key Highlights

• Enterprise GRC helps organizations anticipate, understand, and holistically manage their risks. As a result, organizations can balance risks and opportunities, make strategic decisions effectively, and respond efficiently to the changes occurring within and outside the enterprise.
• Implementing stringent regulations and mandates by the government across various end-user verticals has increased the need to adopt eGRC solutions that fulfill the need for compliance, audit, risk management, etc. Around 57% of senior-level executives rank “risk and compliance” as one of the top two risk categories they feel least prepared to address.
• Moreover, the rising threats amongst organizations due to digitalization and the sharing of vast data have led to different forms of cyber threats and attacks. Hence, the cybersecurity threat is one of the critical drivers for eGRC software adoption. The increasing need for efficiency in financial assessment and cost-saving solutions is expected to fuel the market growth.
• However, a lack of awareness about the various benefits of eGRC, especially in small and medium businesses, has hindered market growth. Furthermore, continuous changes in the company’s code of conduct and organizational structures are likely to curb market growth. For instance, only 36% of organizations have a formal enterprise risk management (ERM) program.

Key Market TrendsDemand from BFSI segment is expected to Witness Significant Growth

• Ensuring compliance and managing risks have become vital parts of the business goals and the non-negotiated components of corporate strategy. In the present strict regulatory environment, with new mandates and standards coming to effect, the need to conform to the regulatory changes for ensuring safety has emerged to be the priority for any bank.
• Major banks globally saw a sharp increase in phishing and other related attacks after the pandemic. Multiple banks relaxed security standards to maintain business continuity, including authorizing money transfers via e-mail. Remote employees with access to company information without banks' internal firewall protections and monitoring are among the biggest security threats.​
• Cybercriminals have demonstrated their capabilities against the Mexican financial sector by exploiting ATMs and defrauding bank customers while also employing such tactics as banking Trojans, launching ransomware attacks, and deploying point-of-sale malware.​As technological advancements have supported most of the financial services vendors globally, there is a push toward the fundamental need for security and reliability.

North America Expected to Dominate the Market

• North America accounts for a significant portion of the global demand for enterprise governance, risk, and compliance solutions, owing to the disappearing boundaries in the hyper-extended enterprises.
• With the hyper-extended enterprises, the security risks also grow. This factor has resulted in an increased focus on identity and access management, for which the government in the country is framing stricter regulations. Therefore, enterprises must comply with federal laws, regulations, standards, and governance relevant to identity management.
• Moreover, the emergence of technologies, such as Big Data, IoT, and cloud software, is anticipated to propel the growth of GRC software over the forecast period. Due to this, there has been a significant rise in cyber-attacks in the last few years. Hence, the factor drives the growth of the market.
• With the enterprise governance, risk, and compliance strategy, the IT, finance, operations, and legal domains are expected to collaborate on their requirements to apply the same control to different regulations. For instance, the hospitals in the region use the same control to ensure compliance with PCI, as enterprise governance, risk, and compliance offer a process that reduces redundancy and repetition and improves efficiency and consistency.
• North America is projected to continue its dominance in terms of revenue in the forecast period. This is majorly due to the early adoption of enterprise governance, risk, and compliance management solutions in the region. Demand for EGRC solutions is highest in the US due to stringent corporate governance regulations.

Competitive Landscape

The enterprise governance, risk, and compliance market is relatively a high competition market and is moderately concentrated. The major companies have been using various strategies such as new product development, acquisition, and collaboration to strengthen their market share. Innovation and updating the features are common as the corporate governance and compliance policies evolve for the end-users.

• April 2021 - CyberNB Inc. announced a partnership with FutureShield Inc., a technology solution and consulting practice for physical & IT security, emergency management, and continuity that specializes in critical infrastructure protection.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Dell EMC
IBM Corporation
Maclear LLC
MetricStream, Inc.
Future Shield, Inc.
Oracle Corporation
SAP SE
SAS Institute, Inc.
Wolters Kluwer
Software AG

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