The Chairman of the Governing Council, Chartered Institute of Loan and Risk Management of Nigeria (CILRMN), Dr Harriet Akubuiro says Artificial Intelligence (AI) is revolutionizing risk management.
Akubuiro said this at the 14 annual risk professionals international conference in Abuja on Saturday.
The theme of the conference was “AI An Essential Factor in Risk Management Practice”.
She said that AI was 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 revotionalising 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, enables financial disclosure and consequent risk quantum,” she said.
She said that the future of risk management was not only about mitigating threats but also harnessing the power of opportunities.
The Provost College of Postgraduate Studies, Veritas University Abuja, Prof. Linus Osuagwu, said that risk management in AI was important and can be conceptualised.
Osuagwu said that it to be canconceptualised as a systematic process that involved identifying, assessing, mitigating, monitoring and controlling potential risks.
He said AI encompassed a portfolio of technologies, including machine learning (ML), natural language processing (NLP), and predictive analytics among others.
He said that AI enabled organisational systems to perform tasks typically requiring human intelligence.
According to him, in risk management, AI facilitates the analysis of large datasets, identification of complex patterns, and generation of predictive insights that enhance relevant organisational decision-making processes.
”Some of the applications of AI in risk management decisions 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.
“Benefits associated with integrating AI into risk management include enhanced accuracy, Real-time monitoring, scalability and cost efficiency,” he said.
He, however, said that while AI offered substantial advantages, its integration into risk management was associated with some challenges.
“Some of these challenges include: Data quality and availability, model interpretability, regulatory compliance.
“Other challenges are ethical implications, Integration with existing systems, dependence on technological infrastructure, cybersecurity risks, cost and resource requirements,” Osuagwu said.
The Executive Secretary of the Federal Government of Nigeria Housing Loan Board, Mrs Ahmed Salamatu said that the institute was a non-profit and non-political independent body meant to inject professionalism in risk management.
Salamatu was represented by the Director, Administration, Mrs Monica Igwe.
She said that the Federal Government Staff Housing Loan Board had the mandate of managing a revolving fund for the purpose of granting soft loan to federal public servants to own their homes.
She said that the scheme was to reduce housing deficit in the country.
“The institute is always ready to partner with dynamic risk management institutions to advance itself with the best practice.
“The board will continue to partner with the institute in capacity building of its personnel for effective and efficient management of the housing loan scheme for the good of all the federal public servant,” she said.
NAN
