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Japan Compliance 2007: Governance, Risk and Compliance

Product Type: Market Research Report
Published by: IDC
Published: February 2008
Product Code: R104-33037
Description

This IDC study (which is a translation of the Japanese report IDC #J7170105) analyzes the implementation trends of various solutions and the correlation with compliance-related IT platforms of the governance/risk/compliance (GRC management) solutions market in the Japan compliance market, based on the results of user surveys. It outlines the measures toward internal controls in Japan-listed companies and presents a forecast of the investment size of the GRC management applications market in the Japan financial sector. The Japan financial GRC management application market is forecast at 1.1 billion yen in 2006 and 1.4 billion yen in 2007. The market will have a CAGR of 36.6% from 2006 to reach 5.1 billion yen in 2011. From 2007 to 2008, compliance management solutions will be increasingly implemented mainly in global companies that are leading in internal control over financial reporting. However, IDC expects the market to enter full-scale growth from 2010.

Financial GRC management solutions have a strong interdependent relationship with high-growing compliance-related IT infrastructure software such as content applications, system/network management software and data access analysis/delivery software. This market promotes across-organizational IT changes and should be watched by user companies. "In terms of organizational and technical measures for IT systems, vendors that target global companies in Japan should actively develop and provide solutions to support the construction of company-wide risk management system for the global market," observes Eiji Sasahara, Research Manager, IT Spending, IDC Japan.

Table of Contents
Table of Contents

IDC Opinion

In This Study

Methodology

Market Size Definitions

Executive Summary

Situation Overview

Compliance

Figure: Compliance Stakeholders and Governing Legislations

Figure: Compliance Market Classification

Definition of Governance, Risk, and Compliance (GRC) Management Solutions

Figure: Governance, Risk, and Compliance (GRC) Management Solutions Platform for Financial Compliance

Table: Classification of Financial GRC Management Solutions Market by Functions

Figure: Relationship Between GRC Management Solutions and Application Market

Table: Main Application Vendors in Financial GRC Management Solutions Market

U.S. GRC Management Solutions Market Trend (Reference)

U.S. GRC Management Solutions Market Trends, 2004-2005

U.S. GRC Management Solutions Market Trends, 2006

U.S. GRC Management Solutions Market Trends, 2007

Trends of Laws and Regulations Over Japan GRC Management

Table: Companies Being Issued the Fine Order by the Securities Exchange Audit Committee

GRC Management Solutions Implementation Trends as Observed From User Survey

Overall Implementation Trends

Figure: GRC Management Solutions Implementation

Table: GRC Management Solutions Implementation by Industry

GRC Management Solutions and Compliance Promotion Activities

Figure: Presence of GRC Management Solutions: Implementation by Compliance Promotion Organizations

Figure: Presence of GRC Management Solutions: Compliance Implementation in External Institutions

Figure: Presence of GRC Management Solutions: Compliance Promotion System Implementation

Figure: Presence of GRC Management Solutions: Stakeholders with Priority

Figure: Presence of GRC Management Solutions: Legislations with Priority

GRC Management Solutions and Compliance-Related IT Investments

GRC Management Solutions and Compliance Infrastructure Market

Figure: Presence of GRC Management Solutions: Compliance Hardware Implementation Rates

Figure: Presence of GRC Management Solutions: Compliance Software Implementation Rates

Figure: Presence of GRC Management Solutions: Compliance Service Implementation Rates

GRC Management Solutions and Other IT Products/Services

Figure: Presence of GRC Management Solutions: Other Hardware Implementation Rates

Figure: Presence of GRC Management Solutions: Other Software Implementation Rates

Figure: Presence of GRC Management Solutions: Other Service Implementation Rates

Internal Control Trends of China Subsidiaries of Japan Listed Companies (Case Study)

Measures for Internal Control System and IT in Japanese Companies in China

Trends of IT Application and Internal Controls in Japanese Companies in China

Impact on Internal Control Systems due to Differences in Japan-China Corporate Culture

Problems of Risk Evaluation/Analysis in Japanese Companies in China

Problems of Internal Control Activities and IT Governance in Japanese Companies in China

Problems Regarding Internal Controls in Japan Headquarters and Japanese Companies in China

Centralized Style

Non-Centralized Style

Eclectic Style

Framework to Construct a Program to Check Fraudulences at Japanese Companies in China

Problems Regarding Information System Organization in Japan Headquarters and Japanese Companies in China

Benefits and Problems of Implementing GRC Management Solutions from the Viewpoint of Japanese Companies in China

Figure: Collaboration Example of GRC Management Organization and Information System Organization in Western Global Companies

Figure: GRC Management Organizational Structure in a Japan Global Manufacturing Company

Future Outlook

Forecast and Assumptions

Table: Key Forecast Assumptions for the Japan Compliance Market, 2007-2011

Japan Compliance Market Forecast

Table: Japan Compliance Market Forecast by Product Segment, 2006-2011

Financial GRC Management Application Market Forecast

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Investment Value Forecast, 2006-2011

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Year-On-Year Investment Growth Rate Forecast, 2007-2011

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Investment Share Forecast, 2006-2011

Figure: Assumed Scenario for Financial GRC Management Applications Market and Compliance Infrastructure Market

Figure: Assumed Scenario for Financial GRC Management Applications Market by Product

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Investment Value Forecast by Product, 2006-2011

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Year-On-Year Investment Growth Rate Forecast by Product, 2007-2011

Table: Japan Financial GRC Management Applications Market and Compliance Infrastructure Software Market: Investment Share Forecast by Product, 2006-2011

Table: Compliance Infrastructure Software Market Classification by Function

Essential Guidance

Actions to Consider

Learn More

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Synopsis

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