Third-party risk management is the method of governing and investigating risks to any organization. Besides, it accesses the risks that could be present while conducting business operations, finances, and data exchange with other organizations. Every business involves third-parties as they are crucial for the company’s planned and strategic decisions. However, while dealing with third-parties there is always the risk of exposing sensitive information. Hence, it becomes necessary to inspect sourcing activities during the entire sourcing lifecycle. Therefore, third-party risk management solutions are gaining traction in recent years.
The global third-party risk management market size is projected to reach over USD 8 billion by 2025. Market growth can be attributed to the rising adoption of virtual applications. Also, the growing number of cyber-attacks is another crucial factor in boosting the global third-party risk management market growth.
However, the lack of a skilled workforce is expected to impede market growth. Furthermore, technological advancements such as smart contracts, data analytics, and automation are some of the key factors expected to be opportunistic for the market in the forthcoming years. Also, growing data protection regulations and laws are anticipated to provide growth opportunities for the market in forthcoming years.
Key Segments of the Global Third-Party Risk Management Market
Management Type Overview, 2018-2025 (USD Million)
- Operational Risk Management
- Compliance Management
- Financial Control Management
- Audit Management
- Contract Management
Services Overview, 2018-2025 (USD Million)
- Managed Services
- Professional Services
End Users Overview, 2018-2025 (USD Million)
- IT & Telecom
- Government and Defense
Regional Overview, 2018-2025 (USD Million
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global third-party risk management market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global third-party risk management market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the third-party risk management industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on management type, services, and end-users. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global third-party risk management market. The report will benefit: Every stakeholder involved in the third-party risk management market.
- Managers within the third-party risk management industry looking to publish recent and forecasted statistics about the global third-party risk management market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of global third-party risk management market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
Third-party risk management solutions have an extensive range of applications across large as well as small & medium size organizations. In a constantly changing dynamic world to automate processes and keep track of overall business operations, third-party risk management needs to adopt advanced technologies. Hence, adopting advanced technologies such as automation can enable efficient monitoring, increase productivity, and reduce unnecessary costs and eliminates human errors. Therefore such factor combined driving the demand for third-party risk management solutions.
Management Type Segment
Based on the management type segment, the market is divided into operational risk management, Compliance Management, financial control management, Audit Management, contract management, others. In the year 2019, the financial control management segment accounted for the highest market revenue and it is anticipated to hold the major market share throughout the forecast period. The dominance of this segment is mainly attributed to the increasing need for a better view of cash flow and cost optimization of business processes. On the contrary, the Audit Management segment gathered the highest CAGR during the forecast period.
Based on the services, the market is segmented into managed services and professional services. The professional services segment leads the market growth in 2019 and it is expected to do so throughout the forecast period. On the contrary, the managed services segment is anticipated to account for the highest growth during the forecast period.
Industry Vertical Segment
In terms of industry vertical, the market is segmented into BFSI, retail, manufacturing, government and defense, IT & telecom, healthcare, and others. The BFSI industry dominated the market in 2019 and it is expected to do so throughout the forecast period. The key reason behind the dominance of this segment is the adoption of advanced technologies and increasing digitization across several business operations which has to lead the numerous types of risks in the industry. However, the healthcare industry is anticipated to account for the highest growth during the forecast period.
The North American region dominated the overall market in 2019 and it is expected to maintain its position throughout the forecast period 2018-2025. The dominance of this region is mainly attributed to the growing adoption of IoT and cloud-based applications. Also, the existence of major industry players is the key factor driving the market growth in this region. However, the Asia-Pacific region is projected to experience the highest growth throughout the forecast period.
The major players of the global Third-Party Risk Management market are Deloitte, PwC, MetricStream, Genpact, KPMG International, RSA Security, Ernst & Young, BitSight Technologies, IBM, and NAVEX Global. Moreover, the other potential players in the third-party risk management market are LogicManager, RapidRatings, Resolver, Optiv, and ProcessUnity. The recognized companies are coming up with innovative and new Third-Party Risk Management Services. For instance, in March 2019, RSA, a cyber-security solutions provider announced the upgrades to its risk management platform to help customers in transforming risk management functions.