Effective risk management will continue to become more challenging, and ultimately more costly, without fundamentally transforming how risk is managed and supported by technology.
Effective risk management will continue to become more challenging, and ultimately more costly, without fundamentally transforming how risk is managed and supported by technology.
In this next article in our series of new insights on innovation in risk and regulatory data and technology, we examine how reshaping of risk technology could yield significantly better risk effectiveness, cost and flexibility for Australian financial institutions (FSIs).
Better use of technology to support Risk Functions is a fundamental enabler of risk effectiveness outcomes. Organisations need to look for ways to use technology to drive better value through simplification opportunities as well as increase in capability. Specifically, in Financial Risk – look to deliver significantly faster time to decision, increased approval rates through advanced AI models and reduced banker effort. In Non-Financial Risk – better understanding and integration of obligations and a shift from a manual controls’ environment to a continuous and proactive data-driven, digitised approach. And finally, in Modelling and Reporting – enable aggregation of results for group-wide reporting, enable better and more timely business decisions. Better and more streamlined data use as well as moving to a service-oriented operating model are key enablers in Risk.