Abstract
Spending on risk management technology is significant and on the rise. The TowerGroup estimates that the total outlays on this technology will exceed $40 billion in the next couple of years. Clearly, one of the main drivers of this spending is the evolving regulatory requirement for more advanced systems to better manage risks — especially the 2002 Sarbanes–Oxley Act and the modified Basle Capital Accord coming into effect in 2006.