Risk Management Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Deployment Mode (Cloud-based, On-premises), Organization Size (Large, Small & Medium-sized), Application, End-use Industry, Geography - Global Forecast to 2031

The Risk Management Market was valued at $18.4 billion in 2023. This market is expected to reach $52.7 billion by 2031 from an estimated $20.7 billion in 2024, at a CAGR of 14.3% during the forecast period of 2024-2031.

Risk Management Market Size & Forecast

This market's growth is driven by increasing cybersecurity concerns and data breaches and the rise in the adoption of risk management among financial institutions. Furthermore, businesses' digital transformation and the growing demand for real-time risk assessment and monitoring are expected to generate growth opportunities for the stakeholders in this market.

Key Findings in the Risk Management Market

• By Offering: In 2024, the Solutions Segment is Expected to Dominate the Risk Management Market
• By Deployment Mode: In 2024, the Cloud-based Segment is Expected to Dominate the Risk Management Market
• By Organization Size: In 2024, the Large Enterprises Segment is Expected to Dominate the Risk Management Market
• By Application: In 2024, the Financial Risk Management Segment is Expected to Dominate the Global Risk Management Market
• By End-use Industry: In 2024, the BFSI Segment is Expected to Dominate the Risk Management Market
• By Geography: North America to Dominate Risk Management in 2024

Risk Management Market Trends

Integration of AI & ML in Risk Management Software 

The integration of artificial intelligence (AI) and machine learning (ML) in risk management software enhances the ability to identify, assess, and mitigate risks. These technologies process large volumes of data in real time, utilizing advanced analytics to deliver more accurate risk predictions and enable timely responses. By leveraging AI, risk management systems can detect patterns and anomalies in data that may signal emerging risks, improving decision-making. Moreover, ML continuously refines its models, increasing accuracy and allowing organizations to adapt to evolving risk environments.

As organizations confront increasingly complex and dynamic risk environments, traditional risk management methods often struggle to handle large volumes of data and identify emerging threats in real time. AI and ML technologies offer powerful solutions by processing and analyzing vast amounts of data quickly, uncovering patterns and connections that may not be immediately apparent. This capability enables organizations to predict potential risks more accurately and respond proactively. Additionally, the integration of AI in risk management software enhances an organization’s ability to effectively manage and mitigate risks to their business operations.

For example, in September 2023, Dataminr, Inc. (U.S.), a leading AI company, introduced new AI-powered risk management features for its Dataminr Pulse for Corporate Security platform. This solution enables organizations to collaboratively manage risks in one centralized platform, providing a comprehensive assessment of risk events, workflows, actions, analysis, and reporting. Furthermore, it helps businesses prepare for potential risks with advanced AI-driven scenario planning and resource allocation capabilities, allowing for proactive risk management before incidents occur.

Increasing Cybersecurity Concerns and Data Breaches 

Increasing cybersecurity concerns and the rise in data breaches have become significant challenges for organizations. As digital transformation accelerates and businesses become more dependent on online platforms, they are increasingly vulnerable to cyber threats such as ransomware, phishing, and malware attacks. This growing exposure to cyber risks underscores the need for more robust cybersecurity measures to safeguard sensitive data and ensure business continuity.

The adoption of risk management solutions has surged across industries in response to growing cybersecurity concerns and the rise in data breaches. Organizations are increasingly implementing comprehensive risk management frameworks that span prevention, detection, response, and recovery. Given the alarming increase in data breaches—potentially leading to severe financial losses, reputational damage, and legal consequences—companies are now prioritizing proactive identification and mitigation of vulnerabilities. To address these challenges, organizations are investing in advanced risk management solutions that leverage AI and machine learning to deliver real-time threat assessments and automate response actions. Additionally, regulatory pressures to safeguard sensitive data further emphasize the need for effective and resilient risk management strategies.

Risk Management Market Opportunities

Growing Demand for Real-Time Risk Assessment and Monitoring

The rising demand for real-time risk assessment and monitoring highlights the need for organizations to effectively navigate an increasingly dynamic and complex risk landscape. With organizations facing a broad spectrum of challenges—ranging from cybersecurity threats to fluctuations in financial markets—the ability to identify and respond to risks in real-time has become crucial for maintaining operational resilience and sustaining a competitive edge. This capability enables organizations to stay agile and make informed decisions in the face of rapidly evolving risks.

Traditional risk management strategies, which often rely on periodic assessments and retrospective analysis, are increasingly insufficient for today’s fast-paced and evolving risk landscape. In contrast, real-time risk assessment leverages advanced technologies such as data analytics, AI, and machine learning to continuously monitor key indicators and detect irregularities as they occur. This proactive approach enables organizations to address potential threats swiftly before they escalate into major issues, reducing the risk of significant losses and enhancing decision-making processes. By providing real-time insights, this approach helps organizations stay ahead of emerging risks and maintain greater agility in their operations.

Risk Management Market Analysis: Top Market Opportunity

The Solutions Segment is Expected to Dominate the Risk Management Market in 2024

Based on offering, the global risk management market is segmented into solutions and services. In 2024, the solutions segment is estimated to account for the largest share of the risk management market. The dominant share of this segment can be attributed to the growing adoption of risk management solutions driven by the rise in cyber threats and data breaches. The increasing complexity of risks has created a greater demand for solutions that ensure operational stability, while the integration of advanced technologies such as AI and machine learning is enabling the development of more sophisticated risk assessment and management tools. These factors collectively underscore the need for enhanced risk management capabilities across industries.

Risk management solutions are structured processes and tools designed to help organizations identify, assess, and mitigate risks across their operations. These solutions encompass a broad spectrum of strategies, including risk assessment frameworks, compliance management systems, and data analytics tools, all of which enable organizations to better understand potential vulnerabilities. By adopting these solutions, organizations can safeguard business continuity by proactively addressing a wide range of risks, such as operational disruptions, cybersecurity threats, financial uncertainty, and regulatory compliance challenges. Ultimately, these solutions enhance an organization's resilience and adaptability, ensuring its ability to navigate and thrive in an increasingly complex business environment.

Geographical Analysis

North America Dominates the Risk Management Market in 2024

In 2024, North America is estimated to account for the largest share of the global risk management market. This dominant share is primarily driven by the increasing presence of key market players in the region, the growing adoption of risk management solutions across end-use industries due to the availability of tailored solutions for specific industrial applications, and rising investments in risk management technologies by these industries. These factors are contributing to the expansion and evolution of the risk management solutions market.

However, Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this market is driven by several factors, including rising awareness of risk management practices across industries, the increasing adoption of risk management solutions in response to the growing sophistication of cyberattacks, and the rising demand for these solutions due to the rapid digitalization of businesses. These trends are fueling the need for advanced risk management strategies to address evolving threats and ensure operational continuity.

Key Companies

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past three years (2021-2024). The key players profiled in the global risk management market report are International Business Machines Corporation (U.S.), Microsoft Corporation (U.S.), SAP SE (Germany), Oracle Corporation (U.S.), Verisk Analytics, Inc. (U.S.), SAS Institute Inc. (U.S.), Moody's Analytics, Inc. (A Part of Moody’s Corporation) (U.S.), AxiomSL, Inc.  (U.S.), LexisNexis Risk Solutions (A Part of RELX Group plc) (U.S.), Provenir Inc. (U.S.), Fidelity National Information Services Inc (U.S.), RSA Security LLC (U.S.), Qualys, Inc. (U.S.), Thomson Reuters Corporation (Canada), LogicManager, Inc. (U.S.).

Risk Management Industry Overview: Latest Developments from Key Industry Players

•  In June 2024, USI Insurance Services (U.S.) launched PATH, a proprietary technology-enabled risk control platform. The new platform leverages industry-specific benchmark data to generate tailored risk control solutions. With PATH, businesses can access a leading-edge technology platform designed to address gaps in their risk management programs through a guided, analytics-driven experience that pairs risk management solutions with individual loss drivers to enable a streamlined, cost-effective decision-making process.
• In October 2023, IBM Corporation (U.S.) launched the next evolution of its managed detection and response service offerings with new AI technologies, including the ability to automatically escalate, helping to accelerate security response timelines for clients. The new threat detection and response services (TDR) provide 24x7 monitoring, investigation, and automated remediation of security alerts from all relevant technologies across the client's hybrid cloud environments.
• In June 2022, SAS Institute Inc. (U.S.), a global leader in AI and analytics, acquired Kamakura Corporation (U.S.), a global financial software company that specializes in software and data for risk management in banking, insurance, and investment businesses.

Risk Management Market Research Summary

Key questions answered in the report: