AI (Artificial Intelligence) has emerged as a game changer by enhancing human activity and reducing cost. It is capable of carrying out analytic tasks in lesser time as compared to that of humans. This means AI’s performance proves to be better in terms of productivity and structure.
This being said, the world of technology and computer intelligence is evolving fast. There are equal chances of serious risks also increasing. How will these risks be managed? Well, AI has again proved effective in the field of risk analysis and risk management.
Risk management by definition is the practice of identifying, in advance, potential risks, analyzing them and taking precautionary steps to mitigate.
Unlike the involvement of people to continually assess the risks, AI is able to manage and identify risks 24*7 without getting fatigued. Apart from being continuously in operation and delivery performance, it has also proved to be fast and accurate. Understanding personas and recognition of customer patterns, reacting to problems and issues are in real time.
AI now envelops the complete process. It can detect known as well as unknown risks, and keep your systems sound and safe. Macro-to-micro risk analysis develops an understanding of the needs and opportunities around security, ensuring strategy and decision making is at the forefront of human thought.
Game Changer in Action
AI can perform risk modelling and analysis based on a varied set of drivers and metrics, for example changes to scope, available resources, reduced budget, etc. Artificial intelligence can identify patterns and sequences that humans cannot; regardless of how complex the risk is.
This has been particularly successful in the banking sector to protect customers from fraud and hacking. This raises consumer confidence, while reducing the errors of a process where human interaction is needed to do the heavy lifting. This development in technology has reduced reliance on mundane activities by people, and allowed them to focus on outcomes and customer experience.
Strategy through Model Risk Management (MRM) and/ or Enterprise Risk Management (ERM) continually improves repeatable process, rather than the other way around. Planning, organization, leadership, decision making and governance can be added to this mix to make risk reduction outcomes more effective. This development of constancy and consistency can only lead to improved revenue and reduced bottom line impact.
AI is taking a leading role in these efforts, forever changing the game in the way we do business.
- @Risk Dynamics: MRM Services
- @SearchCIO: Enterprise Risk Management
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