Recently, there is a lot of discussion about the Technological Infrastructure that supports the Risk Management processes of organizations. Big Data and Artificial Intelligence technologies, are expected to take front stage in providing solutions and shape the next day.
And the question is: Is it possible for an organization to move directly from the Excel it has been using so far for Risk Management to Big Data and Artificial Intelligence solutions?
It seems that only about 25% of the digital data owned by organizations are fit for analysis, while in reality much less is actually analyzed.
While it is easy to attribute this to the challenges of Big Data, in reality it simply reflects the inability of organizations to use the new technologies effectively to their advantage.
The reason is that other important intermediate steps leading from Excel to Artificial Intelligence have been omitted. There are many changes that an organization must implement and many processes that must be incorporated to enable the effective use of such tools.
The first necessary and fundamental stage is the installation of an ERM Integrated Risk Management Information System.
In the majority of cases, the departments involved in the Risk Management process (Risk Management Unit, Internal Audit, Compliance, etc.) each follow their own methodology, their own records and different Standards. The consequence of disconnected practices and methodologies is a lack of a complete picture and incomplete, if not false messages to management.
So before an Organization decides to invest in Big Data Analytics, Data Visualization Tools and even more in Artificial Intelligence, it should solve other more fundamental issues of information integration, methodology and the development of collaboration and understanding within the Organization.
An Integrated Information System with integrated and automated processes used across the entire body of an organization, introducing assessment models and workflows, solves the problem and ought to be the first necessary step because:
Sets the framework, (roles, responsibilities, standards)
Defines the boundaries of mitigation and acceptance
Gathers all available information
Automates the monitoring process
Provides rich reporting and can provide medium-term forecasts
Once the Organization has matured with the use of such an Integrated Information System, then it can move on to more sophisticated data analysis and forecasting tools.
It is therefore advisable for organizations that choose their ERM to investigate beforehand whether it is open to such extensions, because indeed Big Data is an extremely useful tool in identifying the modern threats that companies face in such a fluid environment.
At E-On Integration we have invested in a state-of-the-art ERM system, as well as in specialized Big Data and Artificial Intelligence analysis services.
We offer an end to end solution in Risk Management through our ERM E-ON RIBIA and integrated Data Analytics services including among others Data Engineering, Business Intelligence and most importantly Predictive Analytics.
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