Legal, Risk and Compliance Solution Market - Key Research Findings
- The global legal, risk and compliance solution market size is anticipated to be valued at ~US$ 8.4 Bn in 2019.
- The legal, risk and compliance solution market is estimated to grow at a CAGR of ~7% during the forecast period of 2019-2029.
- The obligatory implementation of GRC solutions in enterprises and increasing adoption of big data and IOT to enhance these solutions are creating potential growth opportunities for legal, risk and compliance solution providers.
- North America is a prominent region in terms of value in the legal, risk and compliance solution market, and accounted for a market share of ~30% in 2018. However, APEJ (Asia Pacific excluding Japan) is expected to overtake North America during the forecast period and become the significant market for legal, risk and compliance solution.
- The APEJ and Western Europe regions, due to strong economic growth, rising urbanization, industrialization, growing adoption of big data and IOT, and supply, will continue to be among the prominent regional markets for legal, risk and compliance solution.
- In order to stay ahead of the pack, legal, risk and compliance solution providers are focusing on mergers and acquisitions of other small and regional players in the market. Such strategic move is likely to help in fulfilling the growing demand from various end-use industries including BFSI (Banking, Financial Services, and Insurance) and healthcare.
- For instance, in July 2018, the Thomson Reuters announced that it has acquired HighQ, which is a leading collaboration platform for the legal and regulatory market. This acquisition will position with an open best-in-class platform at the heart of the legal software ecosystem.
Key Factors Shaping the Legal, Risk and Compliance Solution Market
High Adoption of eGRC Solutions
eGRC is an innovative and multifunctional approach that covers people, technologies, and processes to reduce compliance costs, improve performance, and gain visibility. The increasing adoption of enterprise governance, risk, and compliance solution (eGRC) for big data and IoT has a positive impact on the legal, risk and compliance solutions market.
Therefore, owing to the rising concern of identifying enterprise risk and compliance management in insurance companies, the demand for legal, risk and compliance solution is expected to increase rapidly.
Technological Advancements to Create New Growth Opportunities
Rapid implementation of new technologies and advancements in GRC (government, risk and compliance) have been transforming financial ecosystems, thereby creating potential growth opportunities for the legal, risk and compliance solution market players.
Advantages such as process structure that improve risk-informed business decisions, regulatory compliance program, consistent risk assessments, and improved predictive capabilities are some of the primary factors resulting in increased adoption of legal, risk and compliance solution.
Market Research Methodology - Perfected through Years of Diligence
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Maintaining a Competitive Edge in the Banking Industry
Growing demand for identifying & assessing risks, conducting compliance processes, implementing & monitoring controls, and eliminating gaps across the advanced multi-country operations in the banking sector are creating opportunities for the legal, risk and compliance solution providers. Maintaining a competitive edge in the banking industry is also a prominent factor that drives the legal risk and compliance solution market growth.
Growth Opportunities in the Asia Pacific Region
The legal, risk and compliance solution providers are focusing on increasing their businesses opportunities across countries in the Asia Pacific region such as India, China, and Indonesia, as these countries are witnessing strong economic growth coupled with continuous industrialization. Rapid adoption of new automation and smart technologies across numerous industries in these countries will further complement the growth of the legal, risk and compliance solution market.
Legal, Risk and Compliance Solution Market Structure Analysis
- The global legal, risk and compliance solution market consist of competition landscape, where majority of key players are maintaining a strategic focus on acquisitions & mergers, new innovation, and partnerships & collaborations to target a strong global footprint.
- The global legal risk and compliance solution market represents a fairly consolidated competition landscape, where majority of the key players maintain their strategic focus on the development of solid distribution partnerships and joint ventures, thus targeting a firmer global footprint.
- Tier-1 legal, risk and compliance solution providers account for around 45% of the overall market. The key legal, risk and compliance solution market participant such as Wolters Kluwer, IBM, Thomson Reuters Corporation, and Oracle Corporation are among the largest and most experienced in the industry, and have a significant regional coverage across the globe.
Enhancing Transparency among Organizations with Single-Source Platform
Legal, risk and compliance solution providers are embracing advanced technology, including automation, for straightforward procedures. Automated legal, risk and compliance solutions enable legal department to completely link to the rest of the business.
The workflow automation allows extending legal procedures - access to contract management requests, vendor intake, e-Signature tracking – as well as automatic non-disclosure contracts, new matter requests and miscellaneous legal requests and approvals to the rest of the business.
Automated intervention helps users submit legal requests in a sleek and effective manner without jeopardizing data security in legal management systems, saving time significantly. In addition, software-driven legal, risk and compliance solutions provide a single source for connecting the enterprise, permitting users in sync to express tips and innovative ideas aiding the company in gaining competitive edge.
Clear-cut record of successive occurrences, including particular duties, interactions or formalities where firms partake in on a regular basis, appear to remain by default. Legal, risk and compliance software design personalized workflows to regulate such occurrences and make them verifiable to auditors. Digital documentation replacing earlier demanding paper trails are easily checked by team members and supervisors, smoothening cooperation, and enhancing answerability.
Timely Notifications to Prevent Non-Compliance Penalties and Potential Risks
Legal, risk and compliance software offers adjustable alert systems to notify users of decided, current and pending compliance deadlines, helping in prevention of fines regarding non-abidance of policies by providing enough time to the teams of organizations to intuitively fulfil the compliance request.
The software keeps an eye on ever-changing regulatory requisites and notify teams in an organization of potential threats, allowing enterprises to analyze the outcomes of official changes, as well as recognize penalties and fines for non-abidance.
All the businesses survive on the profits earned and maneuver opportunities to save money. The customized workflow automation allows legal, risk and compliance teams to implement non-disclosure agreement procedures in lesser time as compared to traditional processes. With the integration of automated software into firms, legal, risk and compliance actions are able to retort to business requirements in a more dexterous way, simplify and enhance their procedures, as well as deliver the effectiveness to the entire firm.
Stringent and Changing Government Regulations in North America and Europe Grab Market Players’ Attention
The need to prevent non-compliance penalties, and improve data privacy is propelling the demand for legal, risk and compliance solutions in North America and Europe. Corporations paid out ~$60 Bn in penalties for the U.S. regulatory violations in 2015, which increased by above five-folds between 2010 and 2015.
Credit unions in the U.S. face a collective ~$6 Bn in annual compliance expenses - ~15% of functional costs. Further, changing state regulations in various states of the US related to customer privacy in private and public sectors are setting high hopes for market players.
European General Data Protection Regulation (GDPR) is upgrading European Union (EU) laws for data protection and data transparency among organizations interacting with the EU-28 demographics. As such, legal, risk and compliance solution providers are thriving to design a suite of solutions to abide by the stringent regulations.
IT-Driven Solutions and Enhanced Data Protection – Key Tenets to Define Stakeholders’ Tactics
Legal, risk and compliance solutions enhancing risk-informed business decisions, regulatory compliance program, consistent risk assessments, and predictive capabilities are bedrocks of organizations. Market players, including Dell EMC, are launching Integrated Data Protection Appliance and Expands Cloud Data Protection Portfolio with the aim to provide converges protection storage, search and analytics in a single appliance, and deliver data security across a broad system of applications and platforms to businesses.
Solution providers are offering a chain of IT-enabled solutions driving chief compliance officers at banks, securities, and insurance firms to keep on top of compliance with multiple financial and non-financial policies. Increasing focus on legal, risk and compliance solutions cuts down the cost of regulatory fines, and increases clients’ faith. As such, market forces are incorporating next-gen technologies – artificial intelligence (AI) and big data – into software platform in a bid to provide timely regulatory updates.
How Growth Will Unfold
Banks and financial service providers are shifting from basic facilities, including insurance, accounting, credit, investment, and cash management services, to non-banking environment such as, mobility services, business process expanding, medical services, and stock handling. As a consequence, the need for an integrated legal, risk and compliance solution is set to become a paramount aspect of business sustainability strategy, and penalties avoidance.
Government across the globe – European GDPR – are updating data privacy norms to efficiently acquire, access, transfer, or share data assets and preserve data privacy and security. Increasing policies regarding technology are influencing banks to extend data & facilities to exterior surroundings via technologies such as, APIs (Application Programming Interface), resulting in enhanced adoption of Cloud, IoT and Cyber security.
- Audit Management
- Compliance Management
- Risk Management
- Policy Management
- Incident Management
- Enterprise Legal Management
- Legal Document Management
- Others (Analytics Management, Business Continuity Management, Financial Control Management, Issue Management, IT eGRC)
- Compliance Management Services
- Governance and Risk Management Services
- Data Privacy Services
- BFSI (Banking, Financial Services, Insurance Sectors)
- Healthcare Industry
- Energy and Utilities
- Manufacturing Industry
- Retail and Consumer Goods
- Telecom and IT
- Mining and Natural Resources
- Transportation and Logistics
- Others (Education, Construction)
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific
- Excluding Japan
- Middle East & Africa