Data, and the information it contains, is the lifeblood of a truly digital business. With the dramatic growth of digitized data externally and within organizations, companies are seeing a dramatic increase in the amount of data they need to collect, store, manage, analyze and understand. While many enterprises recognize the importance of using this information to provide better experiences for their management, customers and their workers, businesses often lag when identifying, collecting and using information from external sources as well as from enterprise systems and applications to make more informed risk decisions. However, this work is necessary because many risk management decisions require more information than most businesses currently have access to or can afford to collect. Information critical to businesses in one or more areas (supply chain, logistics, risk and compliance, etc.) sometimes exists in places that organizations find challenging to acquire or access because the relationship to the firm or ownership is not immediately obvious or there may be secondary or tertiary connections. Uncovering connections is an area where technologies like artificial intelligence (AI), semantic analysis, knowledge graphs and machine learning (ML) are beginning to excel
At the PwC 2019 Risk Summit, experts in risk management, data, and analytics discussed ways in which market leaders are becoming smarter risk takers through data and analytics, riding the waves of technology trends and digital transformation. IDC analysts attended the Risk Summit as equal participants in the discussion, and to capture details on the firsts latest set of investments in Digital Risk Solutions. At the center of IDC’s interest is the PwC Strategic Risk Data Lake. According to IDC analysts David Schubmehl and Lynne Schneider, “IDC sees a future where almost all enterprise and collaborative applications have elements where the software provides automated assistance, recommendations, and predictions via artificial intelligence services. PwC Digital Risk Solutions uses these same technologies and capabilities combined with a wide variety of public and private information sources to provide users with risk identification and awareness as well as potential answers and next best actions based on their actual usage of the system. The use of machine learning and contextual clue recognition and action greatly improves capabilities versus ad hoc methods that organizations might have been using in the past. Organizations should strongly consider tools that offer capabilities like PwC's Digital Risk Solution to improve and augment their risk awareness and analysis capabilities.”*
According to Jeff Hunter, Risk Assurance Partner for PwC Digital Risk Solutions and Chief Scientist for Strategic Risk Data Lake applications, "Using advanced technology and PwC’s proprietary analytics and algorithms, our Strategic Risk Data Lake integrates disparate data sources, both structured and unstructured, and fuses them together into actionable intelligence to simplify decision making and risk mitigation. It integrates with legacy systems and processes to provide a broad and deep view of known and previously unknown risks and risk relationships.”
*Source: IDC White Paper, sponsored by PwC, Becoming a Smarter Risk-Taker: Building and Operating an AI-Based Risk Information and Decision Management System in the 21st Century, June 2019
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