Chartis Research – Market Update - Enterprise GRC Solutions 2017
Chartis presents an overview of the current state of the risk technology market for the main areas of enterprise GRC: operational and conduct risk, model risk governance, artificial Intelligence (AI) for GRC, third-party risk, IT risk management, internal audit management.
Chartis mentions that little has changed between the 2015 market update and this one. Despite some industry-specific developments, financial institutions (FIs) still take a mostly siloed approach to GRC, with weak links between departments. However, there is currently potential for significant, widespread changes in future, driven by the current political environment.
The trend continues towards increasingly integrated GRC platforms. This will continue despite regulatory uncertainty and shifting definitions of what constitutes misconduct, largely driven by a set of supply side factors and costs:
An increasing focus on cost of GRC and compliance specific technologies. Firms’ aggressive cost prioritization programs have placed a higher than usual emphasis on the cost of GRC and compliance technology.
The need to keep customers front and center of all operations.
Developments in sophisticated data-driven technologies. A whole new ecosystem of data analytics has developed, including: standard big data platforms such as Hadoop, AI on the cloud, and new analytical languages such as Python, R, and Lua.
The emergence of AI and robotics as fundamental components of the workflow platforms and robotics (technological mechanisms to mimic humans).