Risk-Based Approach within Artificial Intelligence

Risk Management for Better Business and AI

Practices for technology risk operational risk strategic risk transformation risk are all part of better business outcomes, required for the implementation of artificial intelligence as well as for business transformation technology transformation and change management.

Realising Better Business and AI

Aimed at those in leadership or having the need for managing or for assurance of operations and services, may these items around risk-based approach to data be of value to you:

• Emergent Behaviour within a Risk Based Approach - With risk management being an emergent behaviour required across the business, how to craft and shape the behaviours necessary, their regulatory aspects, and the significance of emergent behaviours (including risk management) at the Board and Executive are explored in this article. From banks to airlines to mining companies and construction operations, managing risk is a core competency across business operations which requires individuals to do their parts, i.e. an emergent behaviour for risk management is formed. Risk is inherent to business transformation as the pragmatics of ongoing delivery are managed against the need to change operations and services with probabilities of success. From strategic risk, through technology risk, to transformation risk, the emergent behaviour for risk management needs to be crafted and shaped with the respective capacity and capability building. This article explores further the role of emergent behaviours in risk management, regulatory, and within business transformation. (https://www.dhirubhai.net/pulse/emergent-behaviours-within-risk-based-approach-keith-sherringham/)
• Risk Management as an Emergent Behaviour – Selling the Approach - To bring sustainable change, the capacities and capabilities for crafting and shaping emergent behaviours are needed for businesses to adopt and adapt. The risk within a program of emergent behaviours, the indirect returns, and the need to deliver business alongside the program are at play. The ease of selling alternatives like audit or controls or technology when compared to the unglamorous pragmatics and risk associated with a program to build emergent behaviours speaks for itself. Yet for businesses, the returns from emergent behaviours are there for the taking. For regulators, the assurance of emergent behaviours can bring its own rewards. Aimed at all readers and those with an interest in risk management, change management, or managing risk based regulatory, the significance of emergent behaviours through the example risk management and a risk-based approach to business are discussed below. (https://www.dhirubhai.net/pulse/risk-management-emergent-behaviour-selling-approach-keith-sherringham/)
• Emergent Behaviour within Automation and Artificial Intelligence Transformation - Our lived experience is that outcomes are achieved through emergent behaviours. Whether it is the sports team, or a community society, or work group, or an organisation or business, or a country; outcomes are achieved through individuals coming together in an emergent behaviour. Even the loan athlete achieves because of the emergent behaviours from the support network and the necessary interdependencies coming together. The need to manage emergent behaviours is typified in the response to COVID-19, amongst others, with its nuances and complexities. Emergent behaviour comes from the actions of individuals having empowered emotional ownership with aligned interests and values. For those responsible for assuring outcomes, it is the balance and alignment of the individual needs within an overall approach which brings the emergent behaviour. Aimed at all readers, the capacity and capability for crafting and shaping the adoption and adaption to enable a risk-based emergent outcomes approach for supporting transformation and operations within automated knowledge worker services is discussed. (https://www.dhirubhai.net/feed/update/urn:li:activity:7012862158506000384/)
• Implementing Artificial Intelligence – Risk Management: Risk Management - Some risks around the implementation of artificial intelligence (AI) beyond the more standard business risks are considered in this part of the series, including the response to the varying components of AI, the business nature, the environment in which a business operates, the use of AI within operations, the data management required, and the types of AI used within business. The role of blended products and the scale of automation in risk management may vary with the use of AI. The need for benchmark testing of AI is also emerging. (https://youtu.be/7jFlmh2DppI)
• Technology & Opportunity Reflections – Artificial Intelligence Risks in Business- ?Artificial Intelligence Risks in Business – While the opportunities around Artificial Intelligence and the automation of knowledge workers services are widely discussed, the “Old Faithful” factors of governance, risk management, people, processes, operational changes, information management, tools, regulatory and compliance as well as changes to products and services, and customers and stakeholders influence the use and take up of AI. Just as they have with other technology changes. (https://youtu.be/cjbwwgwhc30 ) For those managing risk, two areas which may differ with AI are: (i) One, the risks from blended and derived information products, analogous to the Global Financial Crisis. (ii) Two, the scale of impacts. The concern is the automated processes where the ongoing AI driven operations lead to errors at scales and/or at rates not previously seen with manual processing. The ability to recover from errors, remuneration and compensations, as well as to re-establish automated operations brings new risks to business.
• Technology & Opportunity Reflections – Risk-Based Assurance for Artificial Intelligence - Risk-Based Assurance for Artificial Intelligence – Like a gold rush, business opportunities come from supporting rather than direct involvement. Assurance of AI is an example of where the demand is emerging and is expected to continue to grow as AI and knowledge worker automation are integrated into business. In looking at aspects of the implementation of assurance of AI, some prospects for business are discussed, especially around Technology, Advisory, Data, and Algorithm management on a risk-based approach. The emerging opportunities will include the use of AI in the assurance of AI. (https://youtu.be/6_bcaXbsyKU)
• Business Transformation Management - Transformation Risk Impacts & Actions: Transformation Risk Impacts & Actions - Transformation risk lies in sustaining operations while making transformations, undertaking a transformation, responding to a need for transformation, varying the response within a transformation, as well as a delayed response or no response. Transformation risk aligns with strategic risk, project risk, and the many other areas of business risk. The familiar markets, customers, costs, and regulatory are seen with changes in technology occurring as well. Transformation risk occurs whether we elect to take a proactive management approach or defer. A program for emergent behaviours, through skilling (the ability to do) and training (the how to do), as well as awareness, with a support network for ongoing capacity and capability to craft and shape adoption and adaption is part of transformation risk and transformation management. (https://youtu.be/5H6PN_FZQRQ)
• Business Transformation Management - Transformation Risk Pragmatics & Practicalities: Transformation Risk Pragmatics & Practicalities - Transformation starts by changing the environment, instilling behaviours to achieve outcomes. As individuals we form the emergent behaviour because we are taken on a journey by crafting and shaping our capacity and capability to adopt and adapt to circumstance. We undergo the journey because of our feeling of worth and value and because we are able to manage ambiguity. We overcome the status quo by using the known to get the best from each other and sharing empathy between us. Discover more in this session. (https://youtu.be/yhPs4QQbrxE)
• Problem Solving Together for Our Future: Sharing Skills and Expertise – Project Risk - Project Risk is of increasing importance to the overall risk profile of a business. Project Risk includes Impact Risk, Outcomes Risk, Delivery Risk, and External Risk. This Project Risk management changes the focus of Program Management and Portfolio Management. Irrespective of the size, type, or sector of a business, the need for Project Risk management experience alongside project management skills and expertise are required by businesses. (https://youtu.be/HeWR1__3grQ)
• Business Transformation Management - Transformation Risk Structure & Framework: Transformation Risk Structure & Framework - Transformation Risk Structure & Framework – The management of run the business and change the business come together in transformation. The alignment between strategic risk and transformation risk is seen, with the ability to deliver being a consideration in risk management. Project risk (impact risk, delivery risk, outcome risk, external risk) alongside the range of business risks is also part of risk management for transformation. Managing the delivery risk through alignment to strategy, true costed projects, resourcing, and management of business time are all required. (https://youtu.be/zzd1ikp2fAk)
• Business Transformation Management - Assurance with 3-Line Model: Business Transformation Management – Assurance with 3-Line Model – The 3-line model of a delivery function, an assurance function, and audit, is part of managing transformation risk and assuring transformation outcomes. Whether it is projects and programs with the use of a Project Management Office (PMO) or assurance of readiness or other business areas and operations, the 3-line model does have its costs and coordination and management issues. The 3-line model is a risk mitigation approach to transformation risk and ongoing operations. (https://youtu.be/Ixji2RfMIFk)

While there is much more, please ease in and feel comfortable. When ready, look forward to providing more details and how can we help?

Associated Links:

• Business Transformation – An Information Gateway (https://www.dhirubhai.net/feed/update/urn:li:activity:7188818948224626688/)
• Implementing Artificial Intelligence – The Proven, Pragmatic, Practicalities, on a Risk-Based Approach with Assured Outcomes (https://www.dhirubhai.net/feed/update/urn:li:activity:7104060042928160768/)
• Enabling Business Transformation - Addressing pragmatics practicalities of enabling business transformation around technology (https://www.youtube.com/playlist?list=PL_oMn8eF6JVjRdkbVYbU74cjxfz0AmXZc)
• Artificial Intelligence – The Economic Transformation to Manage (https://www.youtube.com/watch?v=GTj4hudLRfo)
• Technology & Opportunity Reflections – Benchmark Testing within AI (https://youtu.be/6C525tXw0t4)
• Implementing Artificial Intelligence - Emerging Openings and Business Opportunities (https://www.dhirubhai.net/feed/update/urn:li:activity:7160019043574308864/).

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