The benefits of AI in risk management
Across all industries, artificial intelligence (AI) is recognised for its impact on changing people’s day-to-day business activities, including how companies approach risk management. Risk management decisions that have been made from strong beliefs, theory or by comparison of other standards will move towards a data-driven and systematic approach supported by AI.
What is AI?
Artificial intelligence, more commonly known as AI, is described as a machine that performs human tasks or human intelligence practised by a computer. AI machines demonstrate human intelligence such as planning, learning, reasoning, problem-solving, information representation and creativity. AI and machine learning give companies the ability to improve management systems, freeing employees from labour-intensive tasks that can be automated.
MSXCYBER – An Information Security Management System (ISMS) is a set of policies and procedures implemented by organisations to manage information risks such as cyber attacks or data theft. ISO 27001 is the auditable international standard that requires a company to establish, implement and maintain best-practice information processes via its ISMS.
How does AI benefit risk management?
Risk management is an essential part of a company’s business continuity plan. Here are a few reasons why AI can benefit your company’s risk management:
- AI can process structured or unstructured data in enormous amounts producing combinations of datasets and updating patterns. This reduces manual data processing and simplifies the assessment, making risks easier to understand.
- AI improves efficiency and reduces cost by converting everyday assistance and guidance in the risk management processes. It limits manual data inputs and boosts openness, communication and accountability, thereby freeing employees to focus their resources on more critical tasks.
- AI can assess risk in a broader data set, thereby bringing awareness to new potential exposures, increasing preventable risk advice and a quicker response time in critical and dangerous situations.
- AI facilitates better decision-making by providing predictive insights and visibility of risk. It improves risk protection, avoids accidents, increase workplace health, and reduces uncertainty for the future.
The current limitations of risk management, such as large data sets, modelling and monitoring, can be facilitated by AI inclusion. In beginning the AI journey, businesses build a foundation for a technology that will restructure their approach to risk management in the future.