Risk management as a word is still unknown to most of the employees in most organizations. They do not know what kind of threat they are welcoming in any step these employees are taking.
Now the most important question that needs to be addressed is that whether risk management is a process or is it a tool?
Way back when risk management was incorporated, it was designed as the decision making tool not as any process. The question that arises here is how many organizations are using this as a tool. And the answer would be-bare minimum. We do not consult any risk manager when we decide on something or when we are making the next move. We later communicate this to the risk manager and make him work on it. Are we going wrong here? Definitely. it is the wrong move or wrong way of carrying this forward. The risk manager should be invited or should be designated as a mandatory person who is part of any management decision rather than keeping him aside and utilizing him when needed. This will help the risk manager get a better idea and suggest better way then and there or he will get a fair idea of working against the risk.
How Risk management is evolving:
Technology advancement, various tools to analyze the outcome, calculate the out come before proceeding and many more. What’s the biggest transformation we can expect in 2019.
The use of cognitive technology within the tool, especially AI and Machine Learning would make a great move in risk management which is a step ahead to predict, detect and resolve any looming threat. Handling the unstructured data is always a concern, its predicted that more than 85 percent of the data generated will be unstructured. When there is a need to predict the risk with the unstructured data then it becomes a difficult task. The traditional method which is being followed would result in your process getting slower and slower. Artificial intelligence with human touch and ability to recognize, analyze, predict and come up with a solution by itself will help the organization in the decision making process.
The learning model which the artificial intelligence has been implanted will learn the risk by itself and derive the solution by itself. Well, this is a great boon towards the advancement of the organization as well as to the risk manager in order to simplify the process.
Relying on the traditional method followed and not upgrading your system would put your organization at a higher risk. Which none of the organization would ever want to, there would be hundreds of different risks involved in each process and the organization is able to resolve the threat by incorporating AI system in their infrastructure. If the role of the risk manager and the advancement in the technology is not updated within your organization then the risk management is at risk.