Welcome to the Chartis RiskTech100® report. Now in its ninth year, the RiskTech100® is globally acknowledged as the most comprehensive study of the world’s most significant risk and compliance technology companies. This year we’re delighted to have additional insight from our research partners, Accenture and EY. In chapter four, Accenture shares a perceptive analysis of how leading banks are tackling cyber threats by integrating their fraud risk management and IT security capabilities. EY’s point of view on the role of integrated risk and compliance processes and systems for tackling financial crime can be found in chapter five.
Over the last twelve months, integrated risk management has emerged as a central theme for many of the companies we’ve spoken to, with leading financial and non financial firms looking to combine their risk and compliance capabilities across multiple risk classes. Often the motivation is to reduce cost and/or complexity – “risk and compliance simplification” is a common term that we hear from CROs – but the ultimate benefit is better risk management. Consistent taxonomies, methodologies and systems drive better decision-making and better alignment to board-level risk appetite.
Of course, the concept of integrated risk management is not new; I remember seeing presentations on it over 10 years ago, post Barings, LTCM and Enron! The difference is that many of the enablers for integrated risk management are now better understood. Enhanced data aggregation, integrated analytics, workflow and reporting have created the opportunity to move from concept to reality. There’s no doubt that regulation helps; large fines and new capital and reporting requirements have acted as a catalyst for action. That said, our research over the last twelve months suggests there is a danger that, in certain domains and geographies, the regulatory focus is leading to the ‘box-ticking’ behavior that we last saw during the post-Enron Sarbanes-Oxley period, with firms falling short of realizing the full benefits of better risk management.
On the supply side, cloud-based risk and compliance solutions dominate the product roadmaps of many of the leading vendors, while Big Data is central to their communications. Most of the RiskTech100® vendors’ growth strategies are dominated by solutions for regulatory compliance and, with time-to-compliance a key differentiator, those with agile and configurable capabilities have a clear advantage. As ever, the Achilles’ heel for most vendors is post-sales implementation and support. Both buyers and sellers of risk technology consistently underestimate the data integration and system configuration challenges – which bring us back to the benefits of cloud-based delivery! The trend for strategic alliances, mergers or acquisitions continues as vendors look to enhance their capabilities and establish new channels for expanding their reach. As such, we’ve noted a coming together of software and content players aiming to provide a one-stop-shop for risk and compliance.
In addition to tracking the latest trends and developments in the risk technology marketplace, this report highlights some of the most dynamic and innovative vendors for key sub-segments and categories (see Category Winners on page 31). I trust that it will prove both valuable and insightful in the year ahead.
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