Risk transformation needs a dynamic interconnection between people and processes – continuously developing and evolving through feedback loops, process improvement initiatives and consideration of emerging issues in risk management. Some of these issues include:
  • Decreasing data reliability as data availability increases – creating risks from business decisions based on that data
  • Potential for flawed or misused artificial intelligence algorithms – creating risks from business decisions using those algorithms
  • Expanding cyber threat surface as AI systems replace more vital business functions
  • Optimistic assumption that systems will identify and manage all risks – emerging risks may be overlooked
  • Displaced roles due to risk automation
  • Skills needed to ensure data quality is understood and managed
  • Skills needed to ensure appropriate and ethical application of automation and analytics