|[January 13, 2021]
Worldwide Vendor Risk Management Industry to 2025 - North America Expected to Hold Major Share - ResearchAndMarkets.com
The "Vendor Risk Management Market - Growth, Trends and Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.
The market for vendor risk management (VRM) is expected to grow at a CAGR of 14.7% during the forecast period (2020-2025).
The increasing number of third-party vendors in large as well as in small and medium enterprises, rapidly changing regulations across different regions, and need to continuously monitor and analyze vendor performance are some of the factors responsible for growing need of vendor risk management.
Key Market Trends
BFSI is Expected to Witness Significant Growth
The Banking sector is, by the nature of its business, is a highly interconnected sector owing to rapidly growing third party integration, increasing connected devices, online banking, and need for faster transactions. Greater interconnectivity introduces higher cybersecurity risks, given that there are too many things to secure and monitor. The interconnected entities are likely connected to new entities, which could also be the source of cybersecurity risk.
Third-party vendors can often pose some serious cybersecurity risks to outsourcing banks such as financial/reputational damage, regulatory problems, operational disruptions, etc. For instance, Australian P&N Bank recently sent its customers a notification letter about a data breach that put the personal and sensitive account information of customers at risk. The bank stated that the breach occurred through its customer relationship management (CRM) platform operated by a third-party hosting firm. The information exposed included name, address, contact details, e.g., email, phone number, customer number, age, account number, and account balance.
According to a study conducted by Opus and Ponemon institute, organizations share confidential and sensitive information with approximately 583 third parties on average that adds up to a lot of additiona risks. And only 34% of organizations in the study reported keeping a comprehensive inventory of these third parties, while just 35% rated their TPRM program as highly effective.
The need for vendor risk management for compliance management, vendor information management, financial control is rapidly increasing in the BFSI industry due to greater exposure and continuously changing regulations. For instance, the guidance provided by Office of the Comptroller of the Currency (OCC) in May 2020, addresses specific types of third parties such as cloud service providers, data aggregators, fintech companies, and subcontractors and how regulations to follow while conducting business with these providers.
North America is Expected to Hold Major Share
The vendor risk management market in the region is proliferating owing to advanced technological developments in the field of AI, machine learning, cloud and IoT, growth of end-user industries such as BFSI, healthcare, and others, increasing levels of investments, and a growing emphasis on data security.
In January 2019, various banks and financial firms in the United States suffered data leak due to a third-party vendor's fault; The data leak was caused due to misconfiguring a server where Ascension stored digital versions of paper financial documents. As a result, one could get access to a database with over 24 million credit reports containing sensitive customer information.
In August 2019, 2019 Annual Default Review, Supply Chain Risk Edition released by Rapid Ratings International Inc., a provider of vendor risk management solution rated 284 United States industrial firms that defaulted or filed for bankruptcy between 2014 and 2018 showed that suppliers in poor financial health have a higher probability of poor performance and bankruptcy. Out of the 37 U.S. industrial firms that defaulted in 2018, 95% had a "High Risk" or "Very High Risk" FHR at the start of the year.
Moreover, the region is home to many business giants who have supply chains spread on an international level such as Walmart and Amazon among others.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.3 Assessment of Impact of COVID-19 on Vendor Risk Management Market
4.4 Market Drivers
4.4.1 Need for the Efficient Management of Complex Vendor Ecosystems
4.4.2 View the Risk Levels Associated With Various Tasks
4.5 Market Restraints
4.5.1 Dependence on Non-Formal and Manual Processes By Many Organizations
4.6 Market Challenge
4.6.1 Solution Integration With Existing Applications
5 MARKET SEGMENTATION
5.1 By Type
5.2 By Deployment Type
5.3 By Organization Size
5.4 By Industry Vertical
5.5.1 North America
5.5.3 Asia Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profile*
6.1.1 RSA (News - Alert) Security LLC
6.1.2 Genpact Limited
6.1.5 IBM Corporation
6.1.6 Resolver Inc.
6.1.7 SAI (News - Alert) Global
6.1.8 Rapid Ratings International Inc.
6.1.10 Optiv Security, Inc.
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET
For more information about this report visit https://www.researchandmarkets.com/r/185obv
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