How Big Data is Shaping Risk Management
06 Aug 2020 1:11 pm by Mark Dunn
Is your business living in VUCA times?
Originally a military term, VUCA stands for ‘volatile, uncertain, complex and ambiguous’. It is being used by a growing number of corporations to describe the modern business environment.
Without any doubt, the risk environment is speeding up for businesses. The increase in the speed of risk evolution has many causes: globalisation of trade combined with the growth in digital communications have magnified risk associated with doing business. Today a business is visible not only for its own responsibilities and actions but often for those of its suppliers and contractors— increasingly further down the supply chain. Social media provides a perfect vehicle to raise awareness of companies (or even their suppliers) that do not walk the talk. Crises can emerge in minutes.
- Our newest whitepaper takes a closer look at how big data and AI are helping companies overcome VUCA. Here’s a sneak peek at what it covers.
Comprehensive overview of how businesses can use big data sources to streamline and speed up risk management
- Details on the application of AI and big data to improve compliance, particularly around watchlists and politically exposed persons as well as anti-money laundering and compliance to sanctions regimes
- Real-world examples of companies using AI and big data improve transparency, sustainability and resilience around supply chain management, including managing risk from indirect suppliers
- Critical technologies, such as Robotic Process Automation and Forensic Data Analytics, that support more efficient and effective risk management
The cost of risk
The cost of poor risk mitigation and management is also increasing as global business regulation becomes more complex and onerous. Companies, particularly global entities, are having to address a growing raft of regulatory requirements, addressing issues such as bribery and corruption, money laundering, corrupt practices and management of data. Breaches of legislation are subject to huge fines: in July 2019, British Airways received a £183 million penalty from the Information Commissioners Office (ICO) for a breach of its security systems, resulting in the details of 500,000 customers being compromised.
Data analytics tools at hand
As risk and regulation grows, many businesses are looking to deploy technology-led systems to identify risk quickly. Technology that was only available to the biggest companies, even a decade ago, is now within the grasp of even medium-sized businesses. Access to on demand computer processing and storage enables businesses to deploy machine learning (ML) and artificial intelligence (AI) to deliver a consistent approach to risk management. By aggregating data sources, including internal and external data, companies can quickly and effectively use technology to manage new customer onboarding or due diligence of suppliers and partners.
Are you making the most of technology yet? Get the white paper to find out how others are!