How using AI and smart technology can actually help you manage the risks in your business better.
Working in modern business, it’s obvious that risk is inevitable. That’s why it’s efficient management is so important to many roles. Today, artificial intelligence is helping us along the way.
Let me be clear, though. I am an advocate for AI – but it isn’t magic. It’s a tool, and it requires the right approach to be wielded responsibly and effectively. What is the right approach, I hear you ask? I’ll explain.
Artificial intelligence for risk management, as well as smart technologies, are best approached from within a set framework. You get to decide what that framework is, but imposing limitations on what they can and can’t do (and when a human should step in and double-check things) is key.
For example, if you were to use an AI/smart technology tool to help you manage financial risk, you would ensure that it integrates with a trusted financial database. Dun & Bradstreet, for example, or even EcoVadis.
For a real use-case scenario, ARCUS® uses smart technology to integrate with both of those example data sources, and it will even automatically monitor those data sources for changes which affect suppliers on the system. Once a change has been identified, it will automatically alert you and kick off a workflow with its own set of tasks to complete. This means you get to stay on top of due diligence, without having to dedicate hours of your life to it.
The workflow is customised depending on organisational need, and this process makes it easier to include important and relevant stakeholders.
Artificial intelligence for risk management can also support efficiency and accuracy by ‘reading’ important documents like contracts and certificates and analysing risk factors. From its analysis, it can produce a summary of risks (and other data, depending on the given prompt) making it easier to assess and make appropriate decisions.
This tool is brand new to ARCUS® - it’s something we’re very proud of making, and very excited to share. I believe having the ability to access summaries of key data points will be of massive help in the effort to manage supplier risks.
Of course, we’ve built this with security in mind. Rather than feeding potentially sensitive information into public LLM’s like ChatGPT, we process the data only within the secure Microsoft Azure ecosystem, using technology such as Azure OpenAI. Azure Open AI provides complete transparency and peace of mind with regards to how data is processed.
Combining these tools to use strategically will be of massive benefit to organisations looking to adopt or develop their use of AI for risk management.
Want more information on artificial intelligence and its use within organisations? I’m moderating a panel of experts in their fields in the latest webinar from Trade Interchange, Future-Proofing Your Procurement Approach with Artificial Intelligence. With insights from the likes of Professor Andy Pardoe, Mark Handley, and James Edmunds, it’s set to be a valuable event for those considering their use of AI at work.
You can sign up here.
