Worldwide risk IT spending to reach $80 billion by 2017

Overall worldwide IT spending in risk technologies and services is forecast to exceed $80 billion by 2017, according to new research from the International Data Corporation (IDC).

The research reveals that worldwide IT spending in risk technologies and services continues to grow, but at a reduced compound annual growth rate of 5.45 per cent compared to previous forecasts for the sector.

"Despite our more conservative forecasts, risk spending is still outpacing growth in overall IT spending, representing between 15 per cent and 17 per cent of overall IT spending on average," IDC Financial Insights global research director Michael Versace said in an April 3 statement.

Mr Versace went on to say that many "spending hot spots" remain throughout the global regions, including issues such as credit analytics, compliance and enterprise risk management (ERM) in the APAC (Asia-Pacific) region.

"At the same time, executives continue to look for risk technology investment value over the long term by establishing a standard for building risk management into all strategic, business IT, and operation IT initiatives, versus being reactive or bolting on initiatives after the fact."

IDC Financial Insights emphasises the importance for businesses of strengthening the analytic backbone of the risk function, in order to stay competitive and more risk aware – this includes financial crime management, operational control, cyber security and critical infrastructure protection.

In addition, IDC Financial Insights recommend that chief risk officers and chief information officers pay close attention to regulatory compliance obligations, growing the risk management talent pool and leveraging risk management opportunities that come from areas such as big data and mobile capabilities.

To ensure your own business is fully risk aware when it comes to managing information security and minimising vulnerabilities, you may want to consider undergoing security audit measures such as penetration testing or ethical hacking.

These security testing methods can help to identify any potential flaws in an organisation's security plan in a safe and controlled way, ensuring that you are able to resolve these issues before they are exploited.

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