Chief Risk Officers (CRO) to focus on analytics and data

IDC’s top 10 predictions indicate that Chief Risk Officers (CRO) will be spending more time on risk data aggregation, analytics, and reporting.

The following are IDC’s top 10 predictions for CRO.

# Risk data aggregation, analytics, and reporting consume 75 percent the Chief Risk Officer (CRO) agenda in 2015.

# Led in part by big data solutions, fraud and financial crimes analytics will set global financial institutions back US$2.8 billion for software and services by 2016.

# 30 percent of top compliance functions introduce a technological means, business processes, and metrics to manage and minimize conduct failures.

# Institutions increase investments in risk culture through enterprise education by more than 15 percent in 2015.

# Industry clouds disrupt legacy risk operations and contribute to a 10 percent reduction in Know Your Customer (KYC) and other compliance costs by 2016.

# Virtually all CROs will be engaged in credit risk modernization initiatives through 2016.

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# By 2016, threat intelligence security services market will growth at a 20 percent compound annual growth rate (CAGR), with consulting services leading the growth.

# To meet the demand for convenience, 10 percent of mobile-initiated commerce will be biometrically secured by 2016 and password usage begins to show signs of decay.

# By 2017, with workable boundaries of regulation at state and federal levels, financial institutions find their role in crypto-currency clearing.

# Through 2016, operational risk spending will grow at an 8 percent CAGR, almost twice the average growth rate for all IT industry spending.

“There will be no end to above average growth rates in risk technology and service investments across all three financial services sectors, and all global regions,” said Michael Versace, global director for Risk and IT Strategy at IDC Insights.

“While regulations continue to pound against margins and profitability, solutions built on cloud, big data, and analytic platforms are offering opportunities to scale and strengthen the CRO’s ability to mitigate risk, perfect risk taking, and contribute to growth and shareholder value,” Versace added.

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