(PRWEB) May 23, 2007
According to Chartis Research's latest report on Operational Risk Management Systems, the worldwide operational risk management (ORM) market will grow at a compound annual growth rate of 9% to $1.55bn by 2011 (Financial Services sector only).
According to Chartis this second wave of expenditure is fuelled by three key drivers:
1.Tier 1 financial institutions are replacing their existing systems
2.Emerging regions (e.g. Asia-Pacific and Middle-East) and some vertical sectors such as insurance and asset management are buying operational risk management systems for the first time
3.Average spend per firm is increasing as financial institutions move away from pure "tick-in-the-box" compliance to value-based operational risk management
"Many of the larger banks and insurance companies are replacing their current ORM systems" commented Chartis, "this is mainly due to rigid and inflexible software products with limited ability to support evolving ORM methodologies - for many firms it is easier to buy a new system than to change and maintain the old one".
The competitive landscape for ORM software is maturing. Vendor products are more sophisticated and stable. In order to compete with the larger players and to increase their global reach some of the smaller vendors are forming strategic alliances to increase their global reach (e.g. Ci3-SunGard, Interexa-Misys, RCS-IRIS, Chase Cooper-IPS Sendero). The leading players are increasing their market share. However, a few of the smaller vendors are catching-up.
About Chartis Research - http://www.chartis-research.com
Chartis Research is the leading provider of research and analysis on the global market for risk technology. Our goal is to support enterprises as they drive business performance through better risk management, corporate governance and compliance. Chartis analyses the systems, products, vendors, applications and trends in the risk technology marketplace. This analysis is published in our flagship industry reports, white papers and research articles. Areas of focus include:
For more information, contact:
Helen Townsley, Director of Research
h.townsley @ chartis-research.com
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