Market worth $1.5bn by 2011 According to a new report from Chartis Research on operational risk management systems, the worldwide operational risk management market – for solutions for financial services firms – will grow at a compound annual growth rate of 9% to $1.55 billion by 2011.Spending on op risk products slowed a bit in 2006 and early 2007, according to conversations the editors of OpRisk & Compliance magazine has had with vendors and consultants, although activity has risen in recent weeks. Certainly, the Chartis report will be welcome news in the operational risk vendor community. According to Chartis, this second wave of expenditure is fuelled by three key drivers, including Tier I financial institutions that are replacing their existing systems; purchase of op risk systems by banks in emerging regions such as Asia-Pacific and the Middle-East; and increased purchases in some vertical sectors such as insurance and asset management.Chartis also commented that the competitive landscape for op risk software is maturing, and that vendor products are more sophisticated and stable. In order to compete with the larger players and to increase their global reach, some of the smaller vendors are forming strategic alliances to increase their global reach (eg, Ci3-SunGard, Interexa-Misys, RCS-IRIS, Chase Cooper-IPS Sendero).The leading players are increasing their market share. However, a few of the smaller vendors are catching up....
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