The risk-free rate is a theoretical rate of return of an investment with zero risk. This rate represents the minimum interest an investor would expect from a risk-free investment over a period of time. It is important to remember that the risk-free rate is only theoretical as all investments carry even the smallest of risks. A higher risk-free rate illustrates that even with a so-called "zero risk" investment, investors would want a higher return because of the countries associated investment risks. Average risk-free rate (RF) rate of investment and market risk premium As of 2024, Turkey had the highest risk-free rate of the countries displayed with 18.6 percent among the European countries under observation. When it comes to the market risk premium, or the rate of return expected by investors over the risk that investments hold, Turkey displayed a higher market risk premium during the same period.
Investment in selected European countries Since 2017, both the risk-free rate and average market risk premium in Ukraine have been excessively high. Even more information on market risk premiums, average risk free rates, and required return on equity in selected European countries can be found in the report on market investments in Europe.

The benchmark interest rate In the Euro Area was last recorded at 2.15 percent. This dataset provides - Euro Area Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Up until 2018, the average risk-free rate in Germany remained relatively stable at approximately 1.4 percent. The risk-free rate is a theoretical rate of return of an investment with zero risk. This rate represents the minimum interest an investor would expect from a risk-free investment over a period. It is important to remember that the risk-free rate is only theoretical as all investments carry even the smallest of risks. As of 2024, the risk-free rate in Germany was 2.7 percent. Risk free rates in Europe A higher risk-free rate illustrates that even with a so-called "zero risk" investment, investors would want a higher return because of the countries associated investment risks. In Europe, Ukraine and Turkey were among the countries with relatively higher average risk-free rates in 2024 compared to other European countries. The majority of European countries have RF rates under four percent in 2024. Market risk premiums Risk free rates reflect market risk premiums (MRP) with Germany displaying low MRP compared to other European countries. Split into three categories (required, historical, expected), market risk premiums measure the rate of return investors expect on an investment over the risk that investment holds. In Europe, average market risk premiums (MRP) sit between five and ten percent. During the last ten years, Germany has seen slight increase in market risk premiums.

Monthly t​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​echnical information relating to risk-free interest rate (RFR) term structures is used for the calculation of the technical provisions for (re)insurance obligations across Europe and contributes to higher supervisory convergence for the benefit of the European insurance policyholders.

The risk-free rate is a theoretical rate of return of an investment with zero risk of financial loss. This rate represents the minimum interest an investor would expect from a risk-free investment over a period of time. It is important to remember that the risk-free rate is only theoretical as all investments carry even the smallest of risks. Across European countries, average risk-free rates differed quite significantly.

United Kingdom is low risk and low reward

When average risk-free rates on a theoretical investment with no risk is high, like seen in Turkey and Ukraine, the opportunity for high reward investments must seem tempting. But with high rewards come higher risks. Countries such as the UK and Germany has consistently shown low risk-free rates due to their investment markets’ relative stability.

Market risk premiums

Market risk premiums (MRP) are a measure that is closely associated with average risk-free rates. MRPs are a measurement of the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRPs, including required market risk premiums, historical market risk premiums and expected market risk premiums. Like average risk-free rates, MRPs vary quite widely across Europe.

Split into three categories (required, historical, expected), market risk premiums measure the rate of return investors expect on an investment over the risk that investment holds. In Europe, average market risk premiums (MRP) sit between five and ten percent.

Greece sees hike in MRP

Although it has a relatively high market risk premium, Greece has seen its rates significantly decrease since 2020. Greece also saw a higher than average return rate on risk free investments. The same correlation can be seen with Europe’s less risky countries for investment. With Germany seeing some of the lowest market risk premiums and risk free returns in Europe.

Required, historical and expected

Separating the three types of market risk premiums is straightforward. Required MRP’s differ between investors, as approaches to investment change and measure the rate of return needed for an investment to be made. Expected premiums look at the rate of return, and what they are calculated to come out as, while historical MRP’s look back over a period at the average rate of return that investors previously got in the past.

Euro Area 10Y Bond Yield was 3.10 percent on Monday May 26, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for Euro Area Government Bond 10y.

The average risk free rate (RF) used in the Netherlands decreased between 2015 and 2021, from 1.8 in 2015 to 0.9 in 2021, and rose in the following years, reaching 2.9 percent in 2024. The risk free rate is a theoretical rate of return of an investment with zero risk. This rate represents the minimum interest an investor would expect from a risk free investment over a period of time. It is important to remember that the risk free rate is only theoretical as all investments carry even the smallest of risks.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are * main concepts to MRPs, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2025, average market risk premiums in Poland decreased from the previous year to reach *** percent. Greece and Ukraine with the highest MRP in Europe In 2023, Poland was relatively well-placed for average market risk premiums in Europe, compared to other countries. Countries with the highest MRP, and therefore of the highest investment risk included Ukraine and Russia. Poland's risk premiums reached *** percent. Ukraine risk premiums averaged at ** percent in 2023. Risk-free rates Risk-free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk-free rates across Europe (except for Turkey and Ukraine) were relatively low in 2023. The risk-free rate of investment in Poland was *** percent as of 2023.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. Unfortunately for investors, this is unlikely to happen as average market risks increase due to the added risk of investment. There are ***** main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2024, average market risk premiums in Portugal decreased from the previous year to reach *** percent. Greece and Turkey highest MRP in Europe In 2023, Portugal, compared to other European countries had a relatively higher market risk premium. Countries with the highest MRP and therefore of the highest investment risk included Turkey and Ukraine. At the other end of the scale was Switzerland, whose market risk premiums averaged half of those seen in Ukraine. Risk free rates Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average market risk free rates in Europe (with some exceptions) were relatively low in 2023. The risk-free rate of investment in Portugal as of 2024 was *** percent.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2024, average market risk premiums in Germany stood at 5.6 percent. MRP in Europe As of 2024, Germany had one of the lowest average market risk premium in Europe. At the same time, market risk premiums in Ukraine were almost twice as high due to the risk of investment involved. Risk free rates Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe were relatively low in 2024. The risk free rate of investment in Germany was less than three percent as of 2024.

The yield on Germany 10Y Bond Yield eased to 2.51% on June 20, 2025, marking a 0.01 percentage point decrease from the previous session. Over the past month, the yield has fallen by 0.14 points, though it remains 0.10 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Germany 10-Year Bond Yield - values, historical data, forecasts and news - updated on June of 2025.

Average market risk premiums (MRP’s) in Sweden have fluctuated between 2011 and 2024. As of 2024, the average market risk premium in Sweden amounted to *** percent. Compared to other countries in Europe, Sweden’s average MRP was relatively low. Similar countries included the Netherlands and Norway, among others. Required, historical and expected Separating the three types of market risk premiums is straightforward. Required MRP’s differ between investors, as approaches to investment change, and measure the rate of return needed for an investment to be made. Expected premiums look at the rate of return, and what they are calculated to come out as, while historical MRP’s look back over a period at the average rate of return that investors previously got in the past. Risk-free rates Risk-free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk-free rates across Europe (with some exceptions) were relatively low in 2022. As of 2023, The average risk-free rate of investment in Sweden was roughly *** percent, the highest ratio recorded since 2015.

The yield on Netherlands 10Y Bond Yield rose to 2.77% on June 24, 2025, marking a 0.04 percentage point increase from the previous session. Over the past month, the yield has fallen by 0.01 points, though it remains 0.02 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Netherlands 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on June of 2025.

This statistic shows the market risk premium (MRP) in Belgium compared to Europe from November 2014 to February 2021. Market risk premiums indicate the additional return an investor receives for holding a risky market portfolio instead of risk-free assets and, together with the risk-free rate of return, makes up the expected return on the market portfolio. The MRP is part of the Capital Asset Pricing Model (CAPM) used by analysts and investors to calculate the acceptable rate of return. In Belgium, it can be seen that the average market risk premium fluctuated between six and nine percent between 2014 and 2018, only reaching 10.58 percent in January 2018. In 2017, the yield on ten-year government bonds in Belgium reached 0.73 percent.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. United Kingdom shows little return for risk Europe wide, Finland had one of the lowest MRP alongside Poland and Germany. Ukraine had average risk premiums of 22.6 percent in 2024. Having a lower market risk premium may seem bad, but for countries such as the UK and Germany where rates have been consistent for several years, it is because the market is stable as an environment for investment. Risk free rates Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe are relatively low.

The yield on Romania 10Y Bond Yield eased to 7.37% on June 23, 2025, marking a 0.12 percentage point decrease from the previous session. Over the past month, the yield has fallen by 0.08 points, though it remains 0.60 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Romania 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on June of 2025.

Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums. In 2023, average market risk premiums in Turkey increased from the previous year. Turkey has second-highest MRP in Europe In 2023, Turkey had the third-highest average market risk premium rates in Europe. That year, right above Turkey, Russia and Ukraine recorded the highest MRP rates in Europe. At the other end of the scale was Netherlands and Switzerland, whose market risk premiums averaged almost quarter of those seen in Ukraine. Risk-free rates Risk-free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk-free rates across Europe were relatively low in 2023, with exceptions. The risk-free rate of investment in Turkey in 2023 was 14.4 percent.

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Risk Management Software Market Size 2024-2028

The risk management software market size is forecast to increase by USD 11.06 billion at a CAGR of 18.69% between 2023 and 2028.

The market is experiencing significant growth due to the increasing number of data and security breaches among enterprises. This trend is driving the demand for advanced risk management solutions that can help organizations mitigate risks and protect their assets. Another key factor fueling market growth is the rising adoption of cloud-based risk management software, along with artificial intelligence and analytics. This delivery model offers several advantages, including lower costs, easier implementation, and greater scalability. 
However, the high cost and complexity of installing and configuring risk management software remain challenges for some organizations, particularly smaller businesses. Despite these challenges, the market is expected to continue expanding as more companies recognize the importance of effective risk management in today's complex business environment. Organizations must stay informed of the latest risk management trends and solutions to ensure they are well-positioned to address evolving threats and mitigate potential risks.

What will be the Size of the Risk Management Software Market During the Forecast Period?

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The market is experiencing rapid digitalization, driven by the increasing adoption of cloud-based applications and the proliferation of smartphones and digital devices. This trend is particularly prominent in industries that require the management of financial tasks, administrative tasks, and risks associated with legal liabilities, financial uncertainty, and security risks. The software enables real-time risk assessment, decision-making, and risk mitigation activities, making it an essential tool for businesses seeking to manage and mitigate potential issues.



With the association between data security and risk management growing, the market is witnessing significant investment in advanced data security features. End-users are increasingly deploying cloud-based solutions to streamline processes, reduce administrative burdens, and improve overall efficiency. The market is expected to continue growing, as businesses seek to stay ahead of evolving risks and ensure business continuity.

How is this Risk Management Software Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Component

  Software
  Services


Deployment

  On-premises
  Cloud


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    Japan


  South America



  Middle East and Africa

By Component Insights

The software segment is estimated to witness significant growth during the forecast period.

The market's software segment is experiencing substantial growth due to the increasing importance of risk analysis and mitigation in various industries. Technological advancements, expanding data volumes, and the need for real-time risk assessment are driving this growth. Quantitative risk assessment software, which employs statistical tools and algorithms to quantify risks and develop mitigation strategies, is a popular example. This software is particularly valuable in sectors such as finance, healthcare, and insurance, where it is a key operational focus. The software enables organizations to assess and manage risks associated with financial tasks, administrative tasks, identity theft, security breaches, and natural disasters.

Cloud-based security solutions and integrated banking features further enhance the software's capabilities. Despite the challenges of trade regulations, production analysis, and cyber-attacks, the market's growth prospects remain promising. Organizations across the IT industry, financial institutions, and developing economies are increasingly adopting risk management software to address issues of financial uncertainty, legal liabilities, and security risks.

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The software segment was valued at USD 2.67 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 31% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Factors such as the presence of many organizations from the banking, financial services and insurance (BFSI), IT se

As of December 30, 2024, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of 27.38 percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United States had one the highest yield on 10-year government bonds at this time with 4.59 percent, while Switzerland had the lowest at 0.27 percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.