Developments in technology continue to disrupt industries and organisations globally, in turn presenting both opportunities and risks. Preparing the risk management community for this challenge through education, training, research and networking events is one of the key strategic objectives of the Institute of Risk Management (IRM).
Set against that backdrop, the IRM recently partnered with leadership advisory firm Egon Zehnder, as well as Lloyd’s of London, to bring together a group of Chief Risk Officers (CROs), leading academics and risk thinkers for a round table discussion focused on the subject of Artificial Intelligence (AI) and its potential impact on the risk landscape in the immediate future.
Iain Wright CFIRM, chair of the IRM, informed Risk Xtra: “Risk professionals are going to need to rely on a range of expert advisors when working with AI, but will also need to develop skills and expertise themselves. Reassuringly, it doesn’t look like the role of a CRO will be replaced by an AI ‘black box’ but, while risk leaders will not need to be deep experts in the field, they will need to have multidisciplinary training and experience. We can expect CROs to stay involved in deciding risk criteria involving the development and use of AI processes, in which case they will need access to trusted advisors who can translate the concepts.”
Rian Raghavjee, UK Risk Practice leader for Egon Zehnder, added: “In this world of increasing complexity, we’re continually inundated with data in our professional and personal lives. It’s data that’s driving the AI revolution. This can be overwhelming for many as we search for ways in which to cut through the noise for the key insights.”
Raghavjee continued: “Data is also driving an instinctive tendency in all of us to delve further into more esoteric areas of specialisation and deepening our search for domain experts including those in the CRO role. However, the conundrum we face is balancing this quest for technical expertise against the competencies of leadership such as inspiring innovation and exercising judgement.”
In conclusion, Raghavjee said: “We were delighted to host the round table event with our friends at the IRM in order to explore these themes further.”
*The discussions are summarised in a report, authored by Trevor Maynard and Dougal Goodman, which can be downloaded from the IRM’s website