About Us |
Contact Us |
LexisNexis Business Solutions
Are your financial risk management decisions informed by artificial intelligence? Increasingly, organizations face significant challenges when it comes to managing risk, but AI can help. What do you need to know? We tackled that topic recently when we teamed up with Gary Moore, Ally Bank’s Director of Data Security Options & Vendor Risk, for a webinar on “Embracing Disruption: How AI is Transforming Risk Management for Financial Services”—now available on-demand.
Addressing AI’s pitfalls
If you’ve held off on fully embracing AI, it’s understandable. AI is not without its own challenges. Take concerns that AI will impact jobs. While AI-powered risk management reduces the need for manual processes, when it comes to decision-making regarding risk, people bring emotional intelligence to the table, so they aren’t about to be made obsolete. In fact, the shift to AI will also create the need for new positions.
In addition, AI goes hand-in-hand with data, and with more data, comes more responsibility. Data security and privacy are top of mind concerns at financial institutions, doubly so when introducing AI into the risk management mix. Ally Bank’s Gary Moore speaks from experience.
He notes in the webinar that when it comes to leveraging AI for risk management, we have to “make sure we’re not introducing new risk as well.”
Approaching new technology with trepidation isn’t unusual. A FinExtra blog last year noted, “If we look at the AI and machine learning today, it seems that it is no different from graduating from the horse driven carriage to a car.” Sure, some were skeptical when horseless carriages were first introduced, but there’s no disputing that cars are the king of the road today. Likewise, the positive potential of AI is gaining speed across industry, especially when it comes to more proactive financial risk management.
Using AI to enhance risk assessments, due diligence and ongoing risk monitoring
During the webinar, some key factors were seen as drivers for adopting AI to support risk management. At the top of the list was globalization. As the global economy has grown, the spread of products, technology, jobs and consumerism around the world means that organizations are expanding as well. With this growth, comes more risk. While globalization is largely seen as the rising tide that lifts all boats, it has created a more complex regulatory landscape. In addition, because organizations are so reliant on these global connections, an economic downturn or political instability in one region of the world is more widely felt than ever before.
AI can help organizations untangle risk in numerous ways. During the webinar, we look at two areas that are benefiting from AI already:
Curious? Keep exploring: