Gartner’s “Hype Cycle for Risk Management, 2019” report was published almost a month ago and reader response has been overwhelmingly positive. In this year’s report, we highlight the need for a “PRACtical” view of risk management technologies to fuel digital business growth.
Entering 2019, CEOs began to understand the unique set of challenges ahead of them. Slower revenue and income growth coupled with the ever-increasing threat of digital disruption have raised the stakes required to deliver results. As such, in our annual 2019 CEO survey, 77% of respondents report plans to increase investment in digital capabilities while only 7% plan to decrease investment in risk management. (See“2019 CEO Survey: The Year of Challenged Growth.”) In addition, risk management is listed as one of the top business priorities, on par with innovation, efficiency and productivity.
Risk management continues to mature and is offering a more practical approach to CEOs looking to improve. Gartner also supports a more practical approach. Four main risk management objectives — performance, resilience, assurance and compliance (PRAC) — now serve as the backbone of our risk management research agenda. This “PRACtical” view of risk management serves as a key theme for this year’s report. Readers will see that newer, emerging technologies are focusing more on performance and resilience as key use case domains. This is not to say that assurance and compliance are not important, it is just a reflection of the evolving needs of today’s digital businesses. An example of this growing need for a more “PRACtical” approach can be seen in the major acquisitions occurring this year in the integrated risk management (IRM) marketplace. In the span of 6 months, 3 acquisitions combining major IRM players demonstrate the technology provider response to the growing demand for these solutions. As integration of these products takes hold, these players will most certainly continue to balance their capabilities across the PRACtical spectrum.