Risk Analytics Market Trends

Growth Drivers

• Growing Incidences of the Data Thefts– In high-risk sectors, risk analytics utilize data to look for control flaws and irregularities that could be indicators of fraud, lowering the chance of data theft. The biggest amount of exposed data records in the world was found in the fourth quarter of 2020, about 125 million data pieces. Moreover, approximately 15 million data records were exposed globally owing to data breaches in the third quarter of 2022. When compared to the previous quarter, this amount had climbed by around 37%.
• Increasing Adoption of Machine Learning- Machine learning approaches are used for analyzing massive volumes of data that can increase the analytical capacities of financial institutions and insurance companies in risk management and compliance. For instance, in 2021, around 76% of organizations chose AI and machine learning (ML) over other IT investments in the world.

Challenges

• Inaccuracy of Data Extracted from Data Silos-Data quality frequently drops as a result of inconsistencies in data that may overlap across silos. Data silos create hurdles to information sharing and collaboration between departments. Moreover, Siloed data is often stored in a separate system and is frequently incompatible with other data sets. Therefore, when data is segregated from the silos, it is difficult for a company to gain an overall understanding of company data.
• Difficult to Comply with the Varying Regulation Policies
• Measurement of Risks on the Basis of Probabilities