A recent Forbes article took a closer look at the challenges and risks organizations are currently facing. Maintaining business operations in an increasingly volatile and complex business environment is difficult. Doing this successfully requires proactive solutions encompassing people, data and infrastructure. Organizations need to move quickly to deal with risks as they evolve. That can’t be accomplished if risk management is sequestered in the back office.
Emerging technologies such as machine learning and artificial intelligence show great promise in helping risk managers pinpoint specific risks and develop responses. However, many risk teams haven’t taken full advantage of mature technologies in areas including data, analytics and modeling. These technologies can reduce efforts in lower-risk areas and help managers focus on real threats that are critical to the organization.
Risk managers need to do more than identify and mitigate potential risks. They need to be active, not passive, or reactive. To do this, they can use external or internal data sources to identify digital signals that provide early indicators of potential problems. New technologies can turn this data into insights and uncover business threats and opportunities.