AI revolutionalising risk management- Institute
By Nana Musa
Dr Harriet Akubuiro, Chairman of the Governing Council of the Chartered Institute of Loan and Risk Management of Nigeria (CILRMN), has stated that Artificial Intelligence (AI) is transforming risk management practices.
Speaking at the 14th Annual Risk Professionals International Conference held in Abuja on Saturday, Akubuiro noted the increasing influence of AI in modern risk management strategies.
The theme of the conference was “AI: An Essential Factor in Risk Management Practice”.
“AI is quietly shaping the future of risk management, a summary of what we are looking at through this theme is how to optimise risk management using AI.
“AI is revolutionising risk management; it is very useful in fraud detection, improves accuracy and efficiency, enhances risk management practices, and provides simulation capabilities.
“It also reduces risks in credit decisions and modelling, assists in analysing big data, and enables financial disclosure and consequent risk quantum,” she added.
Akubuiro noted that the future of risk management extends beyond mitigating threats to leveraging AI for opportunities.
Prof Linus Osuagwu, Provost of the College of Postgraduate Studies at Veritas University, Abuja, underscored the importance of AI in risk management.
He described it as a systematic process involving the identification, assessment, mitigation, monitoring, and control of potential risks.
“AI encompasses a portfolio of technologies, including machine learning (ML), natural language processing (NLP), and predictive analytics.
“In risk management, AI facilitates the analysis of large datasets, identification of complex patterns, and generation of predictive insights that enhance organisational decision-making processes.
“Some of the applications of AI in risk management include credit risk assessment, fraud detection and prevention, marketing risk analysis, operational risk management, cybersecurity threat detection, supply chain risk management, and environmental risk assessment”.
According to Osuagwu, the integration of AI into risk management provides several benefits, including enhanced accuracy, real-time monitoring, scalability, and cost efficiency.
However, he acknowledged that the adoption of AI also presents challenges.
“Some of these challenges include data quality and availability, model interpretability, regulatory compliance, ethical implications, integration with existing systems, dependence on technological infrastructure, cybersecurity risks, as well as cost and resource requirements,” he said.
Mrs Salamatu Ahmed, Executive Secretary of the Federal Government of Nigeria Housing Loan Board, emphasised the role of the institute in promoting professionalism in risk management.
Represented by the Director of Administration, Mrs Monica Igwe, Ahmed described the institute as a non-profit and non-political independent body committed to advancing best practices in risk management.
She also highlighted the mandate of the Housing Loan Board to manage a revolving fund for granting soft loans to federal public servants to own homes, thereby addressing the nation’s housing deficit.
“The institute is always ready to partner with dynamic risk management institutions to advance itself with best practices.
“The board will continue to partner with the institute in capacity building for its personnel to ensure effective and efficient management of the housing loan scheme for the benefit of all federal public servants,” she added. (NAN)(www.nannews.ng)
Edited by Kadiri Abdulrahman
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