Risk Manager + AI: AI Takes Charge in Human Risk Management, A CISO's Roadmap to AI, How Upstart's AI is Changing Credit Scoring

From improving coverage to enhancing operational efficiency, AI is reshaping the way risk is managed from the enterprise on down. We are here to explore the latest trends and insights in risk management and AI, without wasting your time. What you need to know today, nothing more. Find more on our site. 

Today’s Features:

• AI Takes Charge in Human Risk Management

• AI's Impact on the Retirement Scene

• Upstart's AI: The New Face of Credit Scoring

• A CISO's Roadmap to AI

• EIOPA Wants Your Thoughts on AI Governance

AI Takes Charge in Human Risk Management

AI is stepping up its game in the world of human risk management. Advanced HRM solutions are now leveraging AI to dive deep into behavioral data. The goal? Predict risk scenarios and tailor interventions to individual needs.

By the Numbers:

- 75% of HRM solutions now use AI to evaluate behavior.

- 50% increase in risk prediction accuracy with AI.

- Over 100 leading solutions identified on the Constellation ShortList™.

Why It Matters: AI-powered HRM solutions mean more accurate predictions and personalized interventions, reducing risk exposure effectively.

What's Next: Expect more innovations in AI for risk management, as tech continues to evolve rapidly. The integration of AI in HRM will likely expand, offering even more refined solutions in the near future. Read More

There’s a reason 400,000 professionals read this daily.

Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results.

Sign up now for free and work smarter, not harder.

AI's Impact on the Retirement Scene

AI is making waves in the retirement sector, reshaping how asset managers handle risk and choose investments. Cerulli's 2024 survey reveals a split in AI adoption among DCIO asset managers, with some diving in headfirst while others stay cautious.

- 60% of asset managers have implemented AI tools in risk management.

- 40% remain hesitant to integrate AI into their processes.

- 25% of managers see significant cost reductions due to AI.

Why It Matters: AI's role in the retirement industry could redefine risk strategies and asset allocation, potentially improving outcomes for retirees.

What's Next: Expect more firms to test AI in niche areas, learning from early adopters. The next survey will likely show a growing trend of AI use as the technology matures and proves its value. Read More

Upstart's AI: The New Face of Credit Scoring

Upstart is shaking up the fintech world with its AI-driven credit scoring and risk assessment models. The company harnesses artificial intelligence to provide a more nuanced view of creditworthiness, moving beyond traditional metrics. It's a game-changer, especially for those typically overlooked by conventional scoring methods.

By the Numbers:

- 70% of Upstart’s loans are fully automated.

- Upstart's AI evaluates more than 1,600 criteria for each applicant.

- The company has seen a 75% reduction in loan defaults.

Why It Matters: AI-driven credit models could redefine the lending landscape, potentially increasing access to credit for millions.

What's Next: Upstart plans to expand its AI-powered solutions to more financial products and services. They're also exploring partnerships with additional banks to broaden their reach.

A CISO's Roadmap to AI

AI adoption is no longer optional for organizations aiming to stay competitive. With the integration of AI, Chief Information Security Officers (CISOs) face the challenge of managing AI-related risks while driving innovation.

A key framework, the NIST CSF 2.0, now emphasizes the 'Govern' function, guiding CISOs in implementing effective AI risk strategies.

- 70% of companies report they're investing in AI technology.

- 60% of these organizations have yet to fully integrate AI risk management into their strategies.

- The NIST CSF 2.0 update includes over 30 new guidelines focused on AI governance.

Why It Matters: As AI becomes more ingrained in business operations, understanding and mitigating its risks remain crucial for maintaining security and trust.

What's Next: CISOs will need to collaborate with cross-functional teams to ensure that AI governance is not just an IT issue but a company-wide priority. Expect more updates to AI governance frameworks like NIST CSF as technology and threats evolve. Read More

EIOPA Wants Your Thoughts on AI Governance

The European Insurance and Occupational Pensions Authority (EIOPA) has opened the floor for public consultation on its newly drafted Opinion on AI governance and risk management.

This project aims to shape the future framework for AI oversight in the insurance and pensions sectors. EIOPA's opinion lays out principles for effective AI governance, stressing the need for transparency and accountability.

By the Numbers:

- The consultation period runs until December 2023.

- EIOPA's Opinion document spans over 30 pages.

- The Opinion outlines 10 core principles.

Why It Matters: Establishing robust AI governance in financial sectors is crucial to mitigating risks and ensuring ethical deployment.

What's Next: EIOPA will gather feedback from industry stakeholders until the end of the year. Their findings will inform the final version of the Opinion, expected to influence EU-wide AI regulations. Read More