The process of risk management needs to evolve with the changing technology in the digital world

Excerpt

Risk and its management play a critical role in the success of any business or computing activity. To a decision-maker, it assists in making informed decisions while simultaneously managing the impact of events that may lead to failure. Due to its importance, risk management has been applied in different domains that range from health [1], business [2], engineering [3] and computing [4]. Despite its importance, as with any field, the risk management process must constantly evolve to best achieve its aims. This requires the risk management process to become interdisciplinary in nature to reap the benefits of other technologies in pursuing its objectives. Recent advancements such as Big Data, Data Analytics and Blockchains have enormously benefitted different domains in achieving their aims more effectively and efficiently. The field of risk management is no exception to these advancements and has benefitted widely too in domains such as insurance [5], supply chain management [6], marketing [7] and customer churn reduction [8]. Using these initiatives, companies have tailored their risk management practices to best achieve their strategic outcomes. A report by EY states that such a shift in risk management from focusing on subjective and individual perception to one that focuses on dealing with the constantly changing landscape is termed Risk Enabled Performance Management (REPM) [9]. REPM takes a proactive approach to manage risks by identifying beforehand the risk trends and factors before managing them to achieve the goals. Artificial intelligence (AI) techniques have played and will continue to play a significant role in achieving REPM aims. …