The traditional methods of risk management, while valuable, can be hindered by human biases, limited data analysis capabilities, and the sheer complexity of modern business operations. Artificial intelligence (AI) offers a transformative solution, empowering risk managers with the tools and insights needed to navigate uncertainties and make informed decisions. This comprehensive guide delves into the… Continue reading AI applications for risk management
Author: Alex Sidorenko
Flexible distribution is better than Triangular or PERT, project managers and cyber risk beware
In my last post, I introduced you to the game-changing concept of flexible distributions. If you haven’t read it yet, do yourself a favour and check it out here: You don’t need to worry about which distribution to use any more. With flexible distributions, available on MakeDistribution, the distribution molds itself to fit your data… Continue reading Flexible distribution is better than Triangular or PERT, project managers and cyber risk beware
You don’t need to worry about which distribution to use any more
Let’s face it – one of the biggest excuses risk managers use to avoid quantitative analysis is the paralysis that comes from choosing the “right” probability distribution. The selection options in ModelRisk can make your head spin: Overwhelming, right? And that’s just one tool. The @RISK plugin also has over 90 distribution functions! It’s like being… Continue reading You don’t need to worry about which distribution to use any more
Reframing everything you know about risk management in a 1.5 hours – watch the full video from RISK-IN conference in Zurich
Risk management is often framed as a separate discipline focused on managing risks through risk registers, heat maps, risk frameworks and qualitative risk reports. This is like confusing astronomy and astrology. Risk registers, heat maps, risk frameworks and qualitative risk reports have nothing to do with risk management, let alone risk based decision making. This… Continue reading Reframing everything you know about risk management in a 1.5 hours – watch the full video from RISK-IN conference in Zurich
100 AI strategies that will transform your risk taking skills
We’ve hit an exciting milestone with the first 100 registrations for RISK AWARENESS WEEK 2024! To me, each registration represents a commitment to advancing risk management and decision-making . And to celebrate, I have prepared 100 ideas AI can transform your company and personal decision making. That’s right. A hundred ideas. Not bs, generic AI-generated… Continue reading 100 AI strategies that will transform your risk taking skills
Never compare inherent to residual risk again
The concept of inherent risk originated in insurance where underwriters used Maximum Possible Loss (MPL) to determine the total value that could be lost in a catastrophic event. MPL considers the absolute worst-case scenario, with no controls in place, even if it’s highly unlikely to occur. The concept of considering the worst-case scenario loss has… Continue reading Never compare inherent to residual risk again
How AI is hijacking risk management jobs
Imagine you are building a world class risk management team for a non-financial company, who would you hire? In my risk management team I need a researcher, a decision analyst, a quant and a culture ambassador. The researcher I need someone to spend time scouring through reports, news articles, and regulatory updates to identify emerging… Continue reading How AI is hijacking risk management jobs
Risk managers, AI will replace you, if you don’t…
A study published in the Annals of Oncology found that a deep learning algorithm achieved a 95% accuracy rate in detecting melanoma from skin lesion images, outperforming a panel of 58 dermatologists whose average accuracy was 86.6%. In another study published in Nature, a deep learning system was able to identify breast cancer from mammograms… Continue reading Risk managers, AI will replace you, if you don’t…
Quant models overthrow traditional risk management: embrace or perish?
In my last job as a Head of operational risk and insurance, I needed a team of 3 quants to build risk models to support decisions, quantify expected losses and calculate expected shortfalls. In my current job, as Head of risk, insurance and internal audit, I can do all this with with 2 AI models,… Continue reading Quant models overthrow traditional risk management: embrace or perish?
Help unlock the power of uncertainty: Why I think Excel needs probabilistic calculations
Whether we like it or not, Excel spreadsheets are the backbone of countless businesses and organizations. They drive projections, inform decisions, and model all sorts of processes. But there’s a fundamental limitation – Excel is deterministic. Just one limitation, you say. I hear you, there are plenty of limitations, but this one is a true… Continue reading Help unlock the power of uncertainty: Why I think Excel needs probabilistic calculations
