The RiskTech Journal
The RiskTech Journal is your premier source for insights on cutting-edge risk management technologies. We deliver expert analysis, industry trends, and practical solutions to help professionals stay ahead in an ever-changing risk landscape. Join us to explore the innovations shaping the future of risk management.
Wheelhouse Advisors' 2025 Predictions: Integrated Risk Management Becomes Non-Negotiable
Risk managers are now more involved than ever in integrating Enterprise Risk Management (ERM) with other risk domains and the business at large. However, the accelerating demands of AI introduce complexities that cannot be ignored. Integrated Risk Management (IRM) technology emerges as a critical tool, providing greater visibility and understanding of risks to drive actionable change.
ServiceNow and Salesforce Enter the AI Agent Arena: Paving the Way for Autonomous IRM
In my previous article on Autonomous Integrated Risk Management (IRM), I explored how AI agents are driving IRM into a new era of automation. With industry leaders like ServiceNow and Salesforce making significant strides in the AI agent market, we are witnessing a transformative moment for business technology. These advancements signal a shift in automation capabilities and present a massive opportunity to develop AI agents specifically for autonomous IRM capabilities.
NYDFS's AI Cybersecurity Guidance Explained: An IRM Approach for Banks Nationwide
On October 16, 2024, the New York State Department of Financial Services (NYDFS) issued groundbreaking guidance addressing the cybersecurity risks of artificial intelligence (AI). The guidance highlights the dual-edged nature of AI in financial services—offering unparalleled opportunities for efficiency and growth while introducing sophisticated cyber threats. As AI technologies evolve, so do the tactics of cybercriminals, necessitating a robust and integrated approach to risk management.
AI Agents: Steering Integrated Risk Management into the Autonomous Era
The Integrated Risk Management (IRM) market is on the brink of a significant transformation, projected to expand from $56.1 billion in 2024 to $133.2 billion by 2031, boasting a compound annual growth rate (CAGR) of 11.4% according to Wheelhouse Advisors. This explosive growth underscores the escalating demand for advanced risk management solutions.
AI's $19.9 Trillion Economic Boost Signals Rapid Growth for Integrated Risk Management
The digital revolution is accelerating, and artificial intelligence (AI) stands at the forefront of this transformation. Released today, IDC's latest research predicts that AI will contribute an astounding $19.9 trillion to the global economy by 2030, driving 3.5% of global GDP. For every dollar invested in AI, $4.60 is expected to be generated in economic value. These findings not only underscore AI's profound economic impact but also highlight the escalating need for robust Integrated Risk Management (IRM) solutions to navigate the complexities that come with such rapid technological advancement.
Why Fortune 500 Companies Are Turning to IRM to Tackle AI Risks Head-On
Given the complex and evolving nature of AI-related risks, traditional risk management approaches may fall short. The fragmented and siloed nature of many corporate risk management strategies can make it difficult to get a clear, holistic view of AI risks and their potential impact across the enterprise. This is where Integrated Risk Management (IRM) becomes critical.
Streamlining AI Risk Management with NIST and IRM
The rapid advancement of artificial intelligence (AI) technology has brought about significant benefits and transformative potential across industries. However, with these advancements come inherent risks that must be managed effectively to ensure AI systems are trustworthy, safe, and aligned with ethical standards. The National Institute of Standards and Technology (NIST) has developed the AI Risk Management Framework (AI RMF) to address these challenges. This framework, particularly its recent expansion to include the Generative AI Profile, offers a comprehensive approach to managing AI risks. When integrated with an Integrated Risk Management (IRM) strategy, organizations can achieve a robust risk management posture.
Balancing Innovation and Risk: AI’s Role in Boardroom Strategy
As artificial intelligence (AI) steadily integrates into corporate governance, boardrooms are witnessing a transformative shift. The concept of a 'robo-director,' where AI provides insights alongside human board members, is becoming a reality. This emerging trend raises significant questions about governance, oversight, and risk management. Wheelhouse Advisors' IRM Navigator™ can play a pivotal role in navigating these uncharted waters, ensuring that AI is leveraged effectively while mitigating associated risks.
Wheelhouse Risk Cycle: Diagnose AI Risks as SEC Filings Indicate Rising Concerns
As AI continues to dominate discussions in tech earnings calls, the enthusiasm surrounding its potential is palpable. Companies have been quick to assure investors of their AI-driven futures. However, this optimism is increasingly tempered by a growing recognition of the risks AI poses, revealing a crucial stage in the Wheelhouse Risk Cycle. Are we truly entering the AI pit of empty promises, or can these risks be managed strategically?
Revolutionizing Risk Management: Insights from the Federal Reserve's Chief Risk Officer
In her keynote remarks at the XLoD Global conference, Mihaela Nistor, Chief Risk Officer of the Federal Reserve Bank of New York, provided a compelling analysis of the current risk landscape and the evolving nature of risk management. Nistor's address highlighted the multifaceted and interconnected risks that organizations face today and underscored the importance of integrating advanced technologies, particularly artificial intelligence (AI), into risk management frameworks.
Generative AI in the “Pit of Empty Promises”: Understanding the Wheelhouse Risk Cycle
The recent Wall Street Journal article, "The AI Revolution Is Already Losing Steam," provides a stark reality check on generative AI's limitations and challenges. This emerging technology, which once promised to revolutionize industries, now appears to be falling into what we at Wheelhouse Advisors term the "Pit of Empty Promises" within the Wheelhouse Risk Cycle.
Bridging the GRC Gap: How AI Turns Sci-Fi Dreams into Boardroom Realities
The podcast “GRC After Hours” is more than a discussion on Governance, Risk, and Compliance (GRC); it's an imaginative journey fueled by creative thinking and lively conversations about the world of risk management. Despite the inadvertently deceptive title reminiscent of an old late-night, adult-themed cable TV series, the podcast makes this complex topic surprisingly entertaining. In a recent episode, the conversation explored how AI can revolutionize risk management, much like the warp drive propels the Starship Enterprise to distant galaxies. With insights from Krista AI, the discussion highlighted how integrating advanced technology can turn sci-fi dreams into boardroom realities.
20 AI Use Cases for Integrated Risk Management in 2024 and Beyond
This article explores the transformative role of Artificial Intelligence (AI) in Integrated Risk Management (IRM), emphasizing how AI enhances risk visibility and mitigation across Enterprise Risk Management (ERM), Operational Risk Management (ORM), Technology Risk Management (TRM), and Governance, Risk, and Compliance (GRC). By linking strategic goals, business processes, technology assets, and compliance frameworks, AI-driven IRM provides a comprehensive approach to navigating today's complex risk landscape.
Transforming Governance, Risk, and Compliance: The Role of Large Language Models in an Integrated Risk Framework
In the realm of Governance, Risk, and Compliance (GRC), organizations have traditionally grappled with cumbersome, manual processes that are not only time-consuming but also prone to errors and delays. The integration of Large Language Models (LLMs) into GRC is poised to revolutionize these areas by providing more streamlined, efficient, and accurate management practices. Here's how LLMs are transforming GRC into a unified Integrated Risk Management (IRM) framework, addressing existing limitations and setting the stage for a more comprehensive approach.
Integrated Risk Management: The Keystone in Safeguarding Generative AI Against Data Poisoning
As organizations increasingly integrate AI into their operations, the role of IRM in ensuring these technologies are leveraged safely and responsibly cannot be overstated. It is through comprehensive risk management strategies that the full potential of generative AI can be realized, driving innovation while protecting against the vulnerabilities inherent in this powerful technology.
The SEC Eyes Digital and Sustainability Risks: How Can IRM Help?
Gary Gensler, Chair of the Securities and Exchange Commission (SEC), yesterday delivered a thought-provoking speech at Yale Law School, addressing the opportunities and challenges presented by digital risks (encompassing Artificial Intelligence) and sustainability risks (including climate change). While acknowledging the potential benefits of AI, he emphasized the need for robust risk management frameworks to address issues like explainability, bias, and systemic risk. This raises the crucial question: how can Integrated Risk Management (IRM) help companies navigate this evolving landscape?
Integrated Risk Management in the Digital Era: Employing IRM Technology for AI Challenges
In the rapidly evolving field of artificial intelligence (AI), the recent comprehensive survey, "Thousands of AI Authors on the Future of AI," spearheaded by AI Impacts, provides critical insights into the trajectory of AI development and its societal implications. As the founder and CEO of Wheelhouse Advisors, I am particularly intrigued by the survey's findings and the essential role of Integrated Risk Management (IRM) in addressing the digital risks associated with AI.
How the EU AI Act Will Forge a New Global Digital Landscape in 2024
The European Union's Artificial Intelligence Act (AI Act), set for enactment in mid-2024, represents a landmark in the global regulatory landscape for digital products and services. This comprehensive legislation is poised to fundamentally reshape how AI is developed, deployed, and managed based on the digital risks it manifests. As the first of its kind, it establishes a precedent for digital risk management, emphasizing safety, fundamental rights, and transparency.
AI Risk: What Every Board Member Needs to Know
Artificial Intelligence (AI) is a double-edged sword, offering both unprecedented opportunities and complex challenges. As boards and executives grapple with the rapid advancements in AI, they must navigate a landscape fraught with both promise and peril. This article aims to equip board members with key AI insights from a recent report by the National Association of Corporate Directors (NACD) and the Data & Trust Alliance, as well as a keynote address by John A. Wheeler at AuditBoard's Audit+Beyond event.
The Dunning-Kruger Effect in Humans and Its Echo in AI: How IRM Can Help
Artificial Intelligence (AI) has become pervasive in our society, transforming how we work, communicate, and solve problems. However, it’s not immune to the cognitive biases that its human creators hold. An intriguing example is the Dunning-Kruger effect, a cognitive bias in humans that can inadvertently permeate AI systems, posing unique risks.
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