Imperial College Business School
2017-10-03

So why is AI a game changer in Risk Management? AI can teach computers to identify potential risks. Traditional methods could not handle the amount of data that is used to take a pro-active approach to managing risk.

Imperial Business collegeGail Danvers - Director of PSD's Banking & Financial Services sector, along with Charlotte Hackett - Senior Consultant, attended the Institute of Risk Management(IRM) Artificial Intelligence (AI) in Risk Management forum. This was hosted by Imperial College Business School this October and gathered experts in the field of AI technology from Imperial College, Google, Microsoft, IBM and 4th IR. The event was chaired by Raza Sadiq, Chair of the IRM's ERM in Banking and Financial Services Sector Interest Group (SIG).

The discussion focussed on how Artificial Intelligence can and will transform risk management in the financial services industry. It touched on the benefits of a symbiotic approach of using artificial and human intelligence to create greater human outcomes, not just across financial services but in a broad range of sectors. The ethical implications of the democratisation of AI and its potential wider impact to society were not forgotten either.

90% of the world's data has been created in just the last two years

Grace BrasingtonGrace Brasington, Vice President of IBM and a former Chief Compliance Officer, spoke about how 90% of the world's data has been created in just the last two years, and explained how we can intelligently use that data.  The concept around using AI to inform Risk Management involves using machine learning and cognitive learning to make better informed decisions, primarily in Anti Money Laundering, Conduct Risk, KYC and Surveillance. The consensus view was that by using artificial and human intelligence symbiotically the benefits for all were far greater as you eliminate human cognitive bias.  

So why is AI a game changer in Risk Management? AI can teach computers to identify potential risks. Traditional methods could not handle the amount of data that is used to take a pro-active approach to managing risk.  If 'cognitive computing' wrongly identifies something as a potential fraud, and a human determines it is not for certain reasons, the computer then learns from that decision, becoming more and more intelligent, and therefore becomes increasingly capable of detecting irregularities and complex fraud.

This was a thought-provoking and informative event, and a fantastic opportunity to meet experts in this field and senior executives within the Risk Management and Financial Services network.

Event Contacts

Consultant
01293 802032 E-Mail
Charlotte Hackett
Smartcard, Authentication & Biometrics - UK
Director
0207 970 9755 E-Mail
Gail Danvers
Head of Global Banking & Financial Services
 Publication Date: 16/10/2017