Risk Analytics

Advancements in artificial intelligence (AI) and predictive technology have significantly expanded the capabilities of risk analytics, accelerating adoption rates across organizations. As processing capabilities and software continue to grow in sophistication, some emerging trends include:

• Organizational strategy: Rather than being used as a secondary planning tool, risk analytics is increasingly being placed at the center of strategic discussions, guiding data-driven decisions in real time.
• Data clean-up: As organizations begin to realize the power of risk analytics, leaders are also starting to prioritize data-related initiatives to clean enterprise databases, allowing them to use risk analytics to produce results with an even higher degree of accuracy.
• Automation and AI: With massive growth in the volume of information available and the emergence of advanced AI-based algorithms, risk analytics is increasingly being used to help decision makers by providing data-driven insights and recommending potential solutions.

With the increasing sophistication and accessibility of risk analytics, organizations should consider investing in and integrating this capability into their risk management initiatives and strategies to achieve greater planning accuracy, take proactive measures, and reduce exposures.

Risk analytics offer business leaders the ability to reduce their total cost of risk through capabilities such as:

• Managing data: Risk analytics can help organizations integrate siloed data into a singular, holistic platform, creating a more unified perspective and generating valuable insights.
• Proactive risk planning: Risk analytics can help business leaders by providing actionable insights that proactively address industry-related challenges and minimize potential exposures, reducing response times and losses in the event of an actual crisis.
• Enterprise-wide collaboration: Given the wide-reaching nature of business interruptions, risk analytics help to unify an organization's approach, providing your teams with an understanding of their vulnerabilities and a clear plan to manage them.

In today’s complex risk landscape, risk analytics offer leaders the opportunity to monitor, assess, and address risk with greater confidence.

Risk analytics is a critical component of creating a comprehensive and effective risk management plan. Risk analytics takes the guesswork and subjectivity out of the planning process, instead of solely relying on opinions and limited historical data to identify future trends.

For decision makers and stakeholders, the use of risk analytics typically results in a stronger, more accurate approach to risk management planning.

Big data is a crucial tool in risk management as it helps organizations to evaluate disparate data from multiple sources. By pulling from a larger pool of data, the insights generated by risk analytics are more accurate due to the size of the population being extrapolated from.

In today’s rapidly changing risk landscape, business leaders need more than historical views to manage risk, allocate capital, and achieve results. Risk analytics should be placed at the center of decision making and planning.