2020 showed us that the global economies and social structures rely heavily on technology to keep these worlds spinning. The digital revolution that was already occurring saw a rapid rise in adoption by global businesses, as a means to survive and recover from a global pandemic, whose effects took the whole world by surprise. In 2021 and beyond, we will see the technology paths taken last year – and expanded upon – to transform how businesses operate for the foreseeable future. It appears from a tech standpoint that there is no going back to the way things were. The world has now changed forever.
Accenture came out with its Technology Vision 2021 report, which outlines five top trends they expect to transform the global business landscape. From digital twins technology to cloud adoption, it is all covered in the report. One area that is interesting to see is tracking how artificial intelligence is continuing to be adopted and experimented with by businesses, to see how it can make internal processes more efficient and more free of errors. Their report highlights how 39% of surveyed respondents stated they would be scaling the use of AI for process transformation, the second highest scaling number behind cloud computing which is a top IT concern for most businesses.
Focusing on AI, we will explore three ways how this data science principle continues to improve and transform the way risk analytics are being used by businesses to manage risks and meet strategic objectives in 2021 and beyond.
Providing a Simple Source of Truth
With data being collected throughout business, there needs technology in place to capture this data and turn it into valuable reporting that drives actions from senior leaders, to avoid losses that may occur in the future. Risk analytics systems can create a unified outlook on risks across the enterprise. A “mission control” where all identified risks are measured and displayed visually to risk professionals to evaluate and act upon. If all your risks are being measured in real-time in front of your eyes from a centralised platform this is a win for risk transparency, giving leaders the tools to improve decision quality.
Creating Risk Intelligence
When data is properly used, it converts to knowledge that businesses use to make better decisions moving forward. When this knowledge is applied to risk management it creates “risk intelligence”.
Risk intelligence is an increased level of awareness of unexpected events or outcomes that could limit organisation’s ability to meet strategic objectives.
Risk analytics platforms allow for collection of data across multiple systems resulting in seamless integration, creating a unified vision of risks across the enterprise. These platforms allow for open communication and collaboration by internal stakeholders to continuously identify, analyse and treat risk sources backed by real-time data that is fed constantly from multiple sources. Risk intelligence that leads to more quality decisions on how to step forward into uncertainty will greatly improve achievement of business goals.
Streamlining Routine Processes
An attraction of artificial intelligence is the ability to complete routine tasks. This will create time for employees to work on more complex projects. The ability of AI to streamline workflows and eliminate manual tasks results in lowered costs and increased profits for businesses.
Risk analytics platforms even can automate communications to internal risk stakeholders, keeping them consistently informed on critical risk data, all without human interaction. With more time to address other important risk management tasks, employees can focus on complex issues that need a human touch – while allowing routine tasks to be handled by machines. Automating task management can also ensure risk owners (leaders) know their responsibilities when it comes to enterprise risk management, as they are constantly being communicated with via automated workflows. This helps keep the entire risk orchestra in tune when it comes to identifying, analysing, and treating enterprise risks.
