Turning Risk Into Opportunity
![Turning Risk Into Opportunity](/media/images/event/Rm6-18_find_innovationrisk.jpg)
Rarely do you hear the terms, governance, risk, and compliance used in conjunction with innovation. But at Burgland, we think innovative risk management is key to avoiding an abyss of regulatory scrutiny, and to enabling your teams to focus on the delivery of business value.
And as of late, it goes without saying that what comes to mind when someone says "innovation" or "emerging tech", is none other than Artificial Intelligence (AI)...although this article is applicable to any technology solutions.
It’s fairly common knowledge that AI, not to be confused with Generative AI, has been in use by financial institutions for years. Most use cases have centered around fighting financial crime and other back-office purposes, but the amount of human intervention required to “sus out” the bad guys is still significant in most implementations. And let’s face it, combatting financial crime with an army of inspectors who must lay eyes on hundreds of artifacts to identify suspicious activity has proven ineffective for many large organizations in their efforts to protect assets while withstanding regulatory scrutiny. This also applies to healthcare organizations and other lines of businesses requiring strong protection of information.
So why not just dive into the AI pool headfirst?!
Crawl, walk, run is the best approach. Adoption of generative AI, if you’re a financial institution or healthcare organization, does not come without its challenges. Regardless of the technology used, there is still an obligation to protect consumers and patients. Get it right, you’ll be a rock star. Get it wrong, and the complications could be devastating to your business.
Leaders of Data, Infrastructure, Architecture, Security, Software delivery, and Risk Management teams (yes, technologically strong risk leaders are a must), should be savvy enough to understand the regulatory concerns of our business partners in addition to having a deep knowledge of technology compliance. In doing so, we can help facilitate an operating model that will yield enterprise alignment, efficiencies, and drive results.
A well-defined, centralized operating model around technology enabled regulatory solutions (Gen AI or otherwise) would go a long way in allowing for maximum agility while keeping a close eye on the risk being incurred.