Navigating the Risk and Regulatory Maze with a Clearer 20/20 Vision

by Cubillas Ding, May 11, 2016
Industry Trends


Celent expects the growth of risk management and risk-related regulatory compliance technology spending in 2019 to hit $72 billion.

The regulatory reform agenda continues to have “long tail” impact on financial services, bearing on the industry’s capital, operating costs, resources, and competitive dynamics. In the report Navigating the Risk and Regulatory Maze with a Clearer 20/20 Vision, Celent examines how risk, capital, and governance-centric regulatory themes continue to shape the industry's imperatives and drive second order effects for risk technology strategies and investment decisions towards the next decade.

Globally, Celent expects the growth of risk management and risk-related regulatory compliance technology spending to hit $72 billion in 2019, at a 10.1% CAGR. This will constitute a significant part of total technology spending across banking, insurance, securities, and investment management sectors in North America, Europe, and Asia-Pacific.

Celent expects non-financial risk spending to grow faster, reaching 29% of total spending, while financial risk will still constitute the bulk of expenditures at 71%. However, from 2015 to 2019, we expect financial risk to shrink by 2.6%, while non-financial risk technology spending is expected to grow faster at 12.7% but only represent a third of the spending.

“Changing industry drivers and regulatory developments could be game-changing mid-term to long-term dynamics that will shape and drive strategic risk management priorities for banks and capital markets firms,” says Cubillas Ding, a research director with Celent’s Securities & Investments practice and author of the report. “Decisions around technology strategies and investments will determine a firm’s prospects into the new decade, 2020 and beyond.”

This 30-page report contains 14 figures and tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary





Key Research Questions


Surveying Risk and Regulatory Themes Shaping Imperatives for Strategic Technology Decisions



Interplay of Emerging and “In-Progress” Regulations



Tougher Stress Tests to Come



Overhaul of Trading Book Capital



Risk-Sensitive Accounting Regimes Will Accelerate Convergence Between Risk and Finance Infrastructures



Operational and Conduct Risk Continues to Become More Holistic



Information, Cybersecurity and CISO Alignment with Risk



Mounting Pressures for Governance and Risk Appetite Management to Demonstrate Tangible Outcomes


Global Risk Technology Spending Forecasts



By Risk Domains



By Financial Vs. Non-Financial Risk



By Geographical Regions



By Internal Vs. External Expenditures



By Client Segment


Closing Thoughts


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


Sign in to download reports and access personalized information