According to “The (r)evolution of risk management“, the latest global study on risk management by dun&bradstreet, the banking and finance sector is undergoing a global digital transformation in all business areas and business processes. The future of the banking sector requires the application of smart tools and technology in risk management, customer communication or commercial and marketing management, among others.
In the same study, you can see how leading companies are using data to manage risk in their organizations.
For example, Machine Learning, automation and Artificial Intelligence (AI) are being used today to manage risk by less than 20% of finance teams. And nearly 60% of finance leaders are using analytics for informing risk management decisions.
In addition, it shows us the tools that companies in the banking sector use for risk management.
- 58% use self-created analytics
- 51% use credit reports
- 32% use 3rd party data
- 31% use economic data
- 23% use 3rd party analytics
- 18% use automated risk decisions
- 7% use Machine Learning
- 7% use Artificial Intelligence
- 2% use Blockchain
Applying data analytics to automate the decision-making process in risk management and using intelligent techniques such as Machine Learning and Artificial Intelligence greatly increase business efficiency. Only a few companies are using the potential of truly intelligent tools in this area. There is still a long way to go, especially in change management within organizations.
“For businesses, the opportunities are clear. Leaders should embrace the transformation and performance opportunities already available to them (and their competitors) from data, analytics, and digitization, as well as the rapidly evolving opportunities in AI, robotics, and automation. To harness these benefits, business leaders will not only have to invest in technology, but also in transforming their organizations.”McKinsey Future of Finance Report
Beacuse, as Behnam Tabrizi, Ed Lam, Kirk Girard and Vernon Irvin tell us in the Harvard Business Review: “Digital Transformation Is Not About Technology.”