Op risk software industry due for shakeout

LONDON – A further shakeout of the operational risk software industry is expected, according to a new report by London-based consultants Chartis Research. In its new report, Chartis says op risk management market worldwide will grow to $1.1 billion by 2009, but only a small percentage of that revenue will be in the software arena. Indeed, software will have grown to just under $200 million by 2009 – hardly the spectacular growth that some industry pundits had been predicting just 12 months ago.

On the other hand, Chartis predicts that internal spending by firms on op risk will remain substantial, while spending on services – such as consulting – will continue to rise at a healthy pace.

The Chartis report indicates that there will be a shift in the op risk software market away from niche players to broader, more holistic applications. The consultant claims a "second wave" of vendors –