Generative AI redefines risk management officers’ role

Generative AI improves organisations’ ability to access risks

Generative AI

Generative AI refers to a class of artificial intelligence algorithms designed to generate new data, such as images, text, or even entire scenarios, that mimic real-world examples. These algorithms, like generative adversarial networks (GANs) and variational autoencoders (VAEs), can learn patterns and generate new content based on the patterns they have observed during training.

Technology Risk Office

In the quest to minimise threats and maximise rewards, Technology Risk Officers become more relient on Artificial Intellegence-AI. AI is being increasing used to spot patterns in data that may indicate fraud or money laundering. Now the release of chatGPT by Openai and BARD by Google which use “Natural Language Processing” to understand prompts from users and generate text and computer code, looks to set to transform risk management in financial services.

Generative AI can simulate various scenarios, including worst-case or rare events, allowing risk managers to assess the potential impacts and plan accordingly. By generating a wide range of possible outcomes, risk management strategies can be tested and refined to address different scenarios effectively. Overthe next decade, Ai will be used for many areas in risk management in finance enabling new types of risk and how to mitigate them and automating and speeding up the…