The global operational risk management solution market size is expected to grow from $1,656.4 million in 2021 to $3,098.0 million by 2028; operational risk management solution market share is estimated to grow at a CAGR of 9.4% from 2021 to 2028, according to ResearchAndMarkets.
After the COVID-19 pandemic, corporate players have introduced changes in their operations by enabling flexible work schedules, allowing remote working, and enhancing the employee experience. The hybrid work models are defined as a more flexible, digital, and rewarding future for their employees.
According to an article published by GENESIS INTEGRATION, 55% of the US workers want a work pattern that allows the mix of working from home and office. The article data also reveals that more than 2 in 5 working adults (42%) are willing to give up some percentage of their salary for higher flexibility at work.
Further, 74% of newer generation would prefer either working from home or splitting work time between home and work, as per the article published by GENESIS INTEGRATION. The rising adoption of a potentially permanent hybrid workforce has led to an increase in operational risk management solutions due to the rise in cybersecurity attacks with remote working.
Further, businesses also need to address the increasing risk of internal fraud. According to the article by Risk Management Intelligence in October 2021, employee fraud cases in Asia Pacific region have increased over the past year in the COVID-19 pandemic. Some of the essential risks include procurement fraud, cash theft, and falsification of expense claims.
Operational risk management solutions demand increase
Business processes will continue to transform in hybrid working environments, thereby increasing the demand for operational risk management solutions due to high risks. Internal controls and business continuity plans need to be reassessed and audited to ensure that operational and process risks are correctly mapped out and mitigated. Also, with increasing reliance on third-party service providers, including technology and business process outsourcing providers, organizations need to strengthen their third-party risk management strategy.
Hence, with the rising adoption of the hybrid workforce model in the current scenario, several risks are also increasing, such as cybersecurity, internal fraud, and business process risks. Therefore, the growing implementation of hybrid work culture is creating significant opportunities for the future growth of the operational risk management solution market industry players.
In 2020, the COVID-19 pandemic had contributed to the operational risk management solution market growth, as millions of employees worked remotely. Such standard protective measures have resulted in the increased usage of third-party networks, digital platforms, and personal computing devices.
Further, such network connectivity solutions increase the risks of cyberattacks and other malware. Furthermore, the surge in digital traffic presented an opportunity to numerous online frauds, phishing attacks, denial of inventory, and ransomware attacks.
According to the Global DNS Threat report, in 2021, 79% of global organizations experienced domain name system (DNS) attacks in 2020. Furthermore, the top DNS attacks included DNS phishing (~39%), DNS malware (~34%), distributed denial of service (DDoS) attacks (~27%), DNS hijacking/attacks (~12%), DNS tunneling (~17%), zero-day vulnerabilities (~16%), and cloud instance misconfiguration abuse (~13%)., Enterprises are adopting advanced operational risk management solutions to detect and manage any abnormal behaviour in the networks due to the increased risks of cybercrimes.
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