Ventiv Technology

10 ©2023 Redhand Advisors. All rights reserved. To that end, vendors need to focus on providing more advanced analytics capabilities and insights that truly add value to their clients. They must also help clients get the most from these tools. By doing so, organizations can more effectively leverage data and analytics to manage risk. The Industry is Growing The survey findings suggest a lot of movement in the RMIS space. Almost one-third (30%) of respondents implemented their system within the past three years, which means they're either implementing RMIS for the first time, or upgrading their vendor or system. Similar to our findings in last year's report, RMIS products are extending beyond traditional capabilities. We continue to see investment in expanding RMIS to include offerings such as governance, risk, and compliance (GRC), and environmental, health, and safety (EHS). Integrated risk management (IRM) is continuing to gain popularity, with many organizations using their RMIS to manage non-traditional types of risks, including operational (61.4%), compliance (46%), strategic (32.4%), and third-party (30.9%) risks. This suggests that organizations are adopting a more comprehensive approach to risk management, integrating various types of risk into a single system, across their operations, for better management and decision-making. In turn, vendors are responding and investing in these capabilities as well. According to the survey, 75% of respondents expect their annual expenditure on risk technology to increase about 12% on average in 2023 — 50% higher than the 8% increase reported last year. This suggests that organizations are becoming increasingly aware of the effectiveness of utilizing technology to manage their risks. Organizations with less than $500 million in revenue are implementing a RMIS at a faster rate than any other size. This trend has been steadily increasing over the past few years, indicating that smaller organizations are recognizing the importance of risk management and are investing in technology to manage their risks. It also helps that costs are coming down for these systems. Overall, the market for risk technology is growing, as risks continue to expand in our current environment. Organizations are willing to invest in technology because they see how integrating it into their risk management processes will be critical to reducing overall liability and improving compliance. Tech is the Future Technology waits for no one — companies of all sizes are realizing this fact and investing in RMIS and other RiskTech solutions. There are some challenges to overcome, such as figuring out how to fully utilize the systems and finding a vendor with the right capabilities, but companies' willingness to invest the time and money to protect themselves from growing risks is high. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Robotic Process Automation (RPA) Mobile Machine Lear ning Inter net of T hing s (IoT) Blockchai n Big Data A na lytics Artificial Intelligence (A.I. ) How likely is your organization to adopt the following advanced technologies within the next three years? Extremely unlikely Somewhat unlikely Neither likel y nor unlikel y Somewhat likely Extremely likel y Already Im plemented NOT FOR DISTRIBUTION

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