Economic and political turmoil is good for business in at least one sector of the IT market: Risk management spending by large financial services firms will be strong this year, according to a survey by Gartner Inc.
Forty-two percent of those polled by Gartner said they will spend US$500,000 to $2.5 million on risk management products and services, accounting for nearly 10 percent of the average respondent's 2003 IT budget. Conducted in November and December 2002, Gartner's phone survey covered large financial services organizations in the U.S.
Risk management will be one of the top three IT investment priorities for such firms through 2005, Gartner said. As the issue becomes increasingly important, responsibility for devising risk management strategies is climbing higher in the enterprise. Primary strategic responsibility is shifting from individual departments to the corporate level, according to the research firm.
Gartner cites three factors driving the increased attention to risk management. New legislation heightens the responsibility financial services providers bear, while added complexity from operations such as new partnering models and expanded product portfolios increases the firms' exposure. Meanwhile, the market's volatility forces business to examine and deal with their vulnerabilities, Gartner said.
Gartner plans to further discuss risk management issues at CeBIT America, which begins June 18 in New York City.
