TABB Group forecasts US$2.592 billion in global compliance market spend in 2015

Institutions would be well-advised to approach governance, risk and compliance (GRC) as a federated architecture that allows for solutions as required, suggests a new report issued Thursday by TABB Group, which forecasts US$2.592 billion in global compliance market spend this year to handle the GRC “data tsunami.”

“The idea of a single GRC platform to meet all of an institution’s needs is a myth,” Shagun Bali, TABB technology analyst and author of The Data Tsunami: Combating the Overwhelming Supply of GRC Data, argues in a statement.

Instead, Bali points out, the best practice for institutions is to approach GRC as a federated architecture that allows for best-of-breed solutions as required, and does not force the institution into one platform that tries to fulfill all needs.

“But no single IT tool has all the answers, which is why firms need to create cohesive business processes to manage various functions and technologies in sync,” Bali adds in the press release from TABB Group, a research and consulting firm focused exclusively on capital markets.

Bali argues that compliance analytics is now a must-have tool. “But enterprise-wide compliance requires a push from top management to introduce a new, efficient architectural paradigm that enables a holistic and unified view of internal and external data, working with vendors and automating parts of the compliance process.”

TABB Group forecasts the global compliance market spend will rise 7.5% to 8% in 2015, reaching US$2.592 billion and growing at a similar pace for 2016, the company statement notes. The increase will be “driven by global regulations that require institutions to expand coverage, enhance existing capabilities and standardize compliance solutions and processes.”

And because of the heightened regulatory scrutiny, “TABB Group sees an increase in compliance- and surveillance-related projects within the buy- and sell-side communities in North America (41%), Europe (43%) and Asia-Pacific (16%) to keep pace with a ‘tsunami’ of governance, risk and compliance (GRC) data.”

The 19-page, 9-exhibit report examines the deeper GRC issues, challenges and trends, describes forward-looking solutions, and highlights five leading providers of GRC tools.

Bali argues the mandates are increasing reporting frequency, data capture and management within tighter timeframes. But because many firms “lack systems or control over their data to make complex analytics an integral part of workflow or enable information to pass back and forth within different functions, incorporating functionality for both internally generated structured data and unstructured data generated by third parties,” the report found.